Correlation Between Digimarc and Compass
Can any of the company-specific risk be diversified away by investing in both Digimarc and Compass 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 Digimarc and Compass into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digimarc and Compass, you can compare the effects of market volatilities on Digimarc and Compass 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 Digimarc with a short position of Compass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digimarc and Compass.
Diversification Opportunities for Digimarc and Compass
Excellent diversification
The 3 months correlation between Digimarc and Compass is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Digimarc and Compass in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compass and Digimarc 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 Digimarc are associated (or correlated) with Compass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compass has no effect on the direction of Digimarc i.e., Digimarc and Compass go up and down completely randomly.
Pair Corralation between Digimarc and Compass
Given the investment horizon of 90 days Digimarc is expected to generate 1.02 times less return on investment than Compass. In addition to that, Digimarc is 2.46 times more volatile than Compass. It trades about 0.01 of its total potential returns per unit of risk. Compass is currently generating about 0.01 per unit of volatility. If you would invest 1,060 in Compass on September 25, 2025 and sell it today you would earn a total of 2.00 from holding Compass or generate 0.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Digimarc vs. Compass
Performance |
| Timeline |
| Digimarc |
| Compass |
Digimarc and Compass Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digimarc and Compass
The main advantage of trading using opposite Digimarc and Compass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digimarc position performs unexpectedly, Compass 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 Compass will offset losses from the drop in Compass' long position.The idea behind Digimarc and Compass 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.| Compass vs. Via Transportation, | Compass vs. Zeta Global Holdings | Compass vs. Navan, Class A | Compass vs. Global Business Travel |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |