Correlation Between Applovin Corp and BASE
Can any of the company-specific risk be diversified away by investing in both Applovin Corp and BASE 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 Applovin Corp and BASE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applovin Corp and BASE Inc, you can compare the effects of market volatilities on Applovin Corp and BASE 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 Applovin Corp with a short position of BASE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applovin Corp and BASE.
Diversification Opportunities for Applovin Corp and BASE
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Applovin and BASE is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Applovin Corp and BASE Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BASE Inc and Applovin Corp 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 Applovin Corp are associated (or correlated) with BASE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BASE Inc has no effect on the direction of Applovin Corp i.e., Applovin Corp and BASE go up and down completely randomly.
Pair Corralation between Applovin Corp and BASE
Considering the 90-day investment horizon Applovin Corp is expected to generate 1.28 times more return on investment than BASE. However, Applovin Corp is 1.28 times more volatile than BASE Inc. It trades about 0.22 of its potential returns per unit of risk. BASE Inc is currently generating about -0.11 per unit of risk. If you would invest 37,096 in Applovin Corp on July 27, 2025 and sell it today you would earn a total of 24,904 from holding Applovin Corp or generate 67.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Applovin Corp vs. BASE Inc
Performance |
| Timeline |
| Applovin Corp |
| BASE Inc |
Applovin Corp and BASE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applovin Corp and BASE
The main advantage of trading using opposite Applovin Corp and BASE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applovin Corp position performs unexpectedly, BASE 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 BASE will offset losses from the drop in BASE's long position.| Applovin Corp vs. Workday | Applovin Corp vs. Snowflake | Applovin Corp vs. C3 Ai Inc | Applovin Corp vs. Zoom Video Communications |
| BASE vs. Accesso Technology Group | BASE vs. Automatic Bank Services | BASE vs. Expertai SpA | BASE vs. Fabasoft AG |
Check out your portfolio center.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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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