Correlation Between Blue Line and Iveda Solutions
Can any of the company-specific risk be diversified away by investing in both Blue Line and Iveda Solutions 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 Blue Line and Iveda Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Line Protection and Iveda Solutions, you can compare the effects of market volatilities on Blue Line and Iveda Solutions 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 Blue Line with a short position of Iveda Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Line and Iveda Solutions.
Diversification Opportunities for Blue Line and Iveda Solutions
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Blue and Iveda is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Blue Line Protection and Iveda Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iveda Solutions and Blue Line 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 Blue Line Protection are associated (or correlated) with Iveda Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iveda Solutions has no effect on the direction of Blue Line i.e., Blue Line and Iveda Solutions go up and down completely randomly.
Pair Corralation between Blue Line and Iveda Solutions
Given the investment horizon of 90 days Blue Line Protection is expected to generate 1.2 times more return on investment than Iveda Solutions. However, Blue Line is 1.2 times more volatile than Iveda Solutions. It trades about 0.01 of its potential returns per unit of risk. Iveda Solutions is currently generating about -0.06 per unit of risk. If you would invest 11.00 in Blue Line Protection on August 28, 2024 and sell it today you would lose (4.33) from holding Blue Line Protection or give up 39.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Line Protection vs. Iveda Solutions
Performance |
| Timeline |
| Blue Line Protection |
| Iveda Solutions |
Blue Line and Iveda Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Line and Iveda Solutions
The main advantage of trading using opposite Blue Line and Iveda Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Line position performs unexpectedly, Iveda Solutions 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 Iveda Solutions will offset losses from the drop in Iveda Solutions' long position.| Blue Line vs. BIO Key International | Blue Line vs. LogicMark | Blue Line vs. Knightscope | Blue Line vs. Guardforce AI Co |
| Iveda Solutions vs. Guardforce AI Co | Iveda Solutions vs. Bridger Aerospace Group | Iveda Solutions vs. Supercom | Iveda Solutions vs. Guardforce AI Co |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |