Correlation Between Pathfinder Ventures and Bagger Daves

Can any of the company-specific risk be diversified away by investing in both Pathfinder Ventures and Bagger Daves at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Pathfinder Ventures and Bagger Daves into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pathfinder Ventures and Bagger Daves Burger, you can compare the effects of market volatilities on Pathfinder Ventures and Bagger Daves and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Pathfinder Ventures with a short position of Bagger Daves. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pathfinder Ventures and Bagger Daves.

Diversification Opportunities for Pathfinder Ventures and Bagger Daves

-0.56

Correlation Coefficient

Pathfinder Ventures  Bagger Daves

Excellent diversification

The 3 months correlation between Pathfinder and Bagger is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Pathfinder Ventures and Bagger Daves Burger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bagger Daves Burger and Pathfinder Ventures is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Pathfinder Ventures are associated (or correlated) with Bagger Daves. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bagger Daves Burger has no effect on the direction of Pathfinder Ventures i.e., Pathfinder Ventures and Bagger Daves go up and down completely randomly.

Pair Corralation between Pathfinder Ventures and Bagger Daves

Assuming the 90 days horizon Pathfinder Ventures is expected to under-perform the Bagger Daves. In addition to that, Pathfinder Ventures is 1.7 times more volatile than Bagger Daves Burger. It trades about -0.01 of its total potential returns per unit of risk. Bagger Daves Burger is currently generating about 0.13 per unit of volatility. If you would invest  3.05  in Bagger Daves Burger on July 21, 2025 and sell it today you would earn a total of  1.35  from holding Bagger Daves Burger or generate 44.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Pathfinder Ventures  vs.  Bagger Daves Burger

Pathfinder Ventures

Risk-Adjusted Performance

Weakest

Over the last 90 days Pathfinder Ventures has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Pathfinder Ventures is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Bagger Daves Burger

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Bagger Daves Burger are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, Bagger Daves sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Pathfinder Ventures and Bagger Daves

The main advantage of trading using opposite Pathfinder Ventures and Bagger Daves positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pathfinder Ventures position performs unexpectedly, Bagger Daves can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bagger Daves will offset losses from the drop in Bagger Daves' long position.

The idea behind Pathfinder Ventures and Bagger Daves Burger pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.