Correlation Between ASSA ABLOY and LogicMark
Can any of the company-specific risk be diversified away by investing in both ASSA ABLOY and LogicMark 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 ASSA ABLOY and LogicMark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASSA ABLOY AB and LogicMark, you can compare the effects of market volatilities on ASSA ABLOY and LogicMark 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 ASSA ABLOY with a short position of LogicMark. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASSA ABLOY and LogicMark.
Diversification Opportunities for ASSA ABLOY and LogicMark
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between ASSA and LogicMark is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding ASSA ABLOY AB and LogicMark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LogicMark and ASSA ABLOY 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 ASSA ABLOY AB are associated (or correlated) with LogicMark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LogicMark has no effect on the direction of ASSA ABLOY i.e., ASSA ABLOY and LogicMark go up and down completely randomly.
Pair Corralation between ASSA ABLOY and LogicMark
Assuming the 90 days horizon ASSA ABLOY AB is expected to generate 0.24 times more return on investment than LogicMark. However, ASSA ABLOY AB is 4.13 times less risky than LogicMark. It trades about 0.08 of its potential returns per unit of risk. LogicMark is currently generating about -0.09 per unit of risk. If you would invest 2,364 in ASSA ABLOY AB on September 4, 2024 and sell it today you would earn a total of 722.00 from holding ASSA ABLOY AB or generate 30.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 81.78% |
| Values | Daily Returns |
ASSA ABLOY AB vs. LogicMark
Performance |
| Timeline |
| ASSA ABLOY AB |
| LogicMark |
ASSA ABLOY and LogicMark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASSA ABLOY and LogicMark
The main advantage of trading using opposite ASSA ABLOY and LogicMark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASSA ABLOY position performs unexpectedly, LogicMark 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 LogicMark will offset losses from the drop in LogicMark's long position.| ASSA ABLOY vs. Bridger Aerospace Group | ASSA ABLOY vs. ATWEC Technologies | ASSA ABLOY vs. Assa Abloy AB | ASSA ABLOY vs. Brinks Company |
| LogicMark vs. Guardforce AI Co | LogicMark vs. Knightscope | LogicMark vs. Bridger Aerospace Group | LogicMark vs. Iveda Solutions |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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