Correlation Between CDW Corp and Intellicheck Mobilisa
Can any of the company-specific risk be diversified away by investing in both CDW Corp and Intellicheck Mobilisa 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 CDW Corp and Intellicheck Mobilisa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CDW Corp and Intellicheck Mobilisa, you can compare the effects of market volatilities on CDW Corp and Intellicheck Mobilisa 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 CDW Corp with a short position of Intellicheck Mobilisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDW Corp and Intellicheck Mobilisa.
Diversification Opportunities for CDW Corp and Intellicheck Mobilisa
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CDW and Intellicheck is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding CDW Corp and Intellicheck Mobilisa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellicheck Mobilisa and CDW 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 CDW Corp are associated (or correlated) with Intellicheck Mobilisa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intellicheck Mobilisa has no effect on the direction of CDW Corp i.e., CDW Corp and Intellicheck Mobilisa go up and down completely randomly.
Pair Corralation between CDW Corp and Intellicheck Mobilisa
Considering the 90-day investment horizon CDW Corp is expected to generate 0.35 times more return on investment than Intellicheck Mobilisa. However, CDW Corp is 2.83 times less risky than Intellicheck Mobilisa. It trades about -0.09 of its potential returns per unit of risk. Intellicheck Mobilisa is currently generating about -0.03 per unit of risk. If you would invest 22,054 in CDW Corp on September 2, 2024 and sell it today you would lose (4,461) from holding CDW Corp or give up 20.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CDW Corp vs. Intellicheck Mobilisa
Performance |
| Timeline |
| CDW Corp |
| Intellicheck Mobilisa |
CDW Corp and Intellicheck Mobilisa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CDW Corp and Intellicheck Mobilisa
The main advantage of trading using opposite CDW Corp and Intellicheck Mobilisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDW Corp position performs unexpectedly, Intellicheck Mobilisa 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 Intellicheck Mobilisa will offset losses from the drop in Intellicheck Mobilisa's long position.| CDW Corp vs. Knowles Cor | CDW Corp vs. Ubiquiti Networks | CDW Corp vs. AmpliTech Group | CDW Corp vs. Viavi Solutions |
| Intellicheck Mobilisa vs. Boardwalktech Software Corp | Intellicheck Mobilisa vs. Research Solutions | Intellicheck Mobilisa vs. OneSoft Solutions | Intellicheck Mobilisa vs. ON24 Inc |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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