Correlation Between Emerge Commerce and Intermap Technologies
Can any of the company-specific risk be diversified away by investing in both Emerge Commerce and Intermap Technologies 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 Emerge Commerce and Intermap Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerge Commerce and Intermap Technologies Corp, you can compare the effects of market volatilities on Emerge Commerce and Intermap Technologies 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 Emerge Commerce with a short position of Intermap Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerge Commerce and Intermap Technologies.
Diversification Opportunities for Emerge Commerce and Intermap Technologies
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Emerge and Intermap is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Emerge Commerce and Intermap Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermap Technologies and Emerge Commerce 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 Emerge Commerce are associated (or correlated) with Intermap Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermap Technologies has no effect on the direction of Emerge Commerce i.e., Emerge Commerce and Intermap Technologies go up and down completely randomly.
Pair Corralation between Emerge Commerce and Intermap Technologies
Assuming the 90 days trading horizon Emerge Commerce is expected to generate 1.38 times more return on investment than Intermap Technologies. However, Emerge Commerce is 1.38 times more volatile than Intermap Technologies Corp. It trades about 0.3 of its potential returns per unit of risk. Intermap Technologies Corp is currently generating about 0.08 per unit of risk. If you would invest 4.50 in Emerge Commerce on October 20, 2024 and sell it today you would earn a total of 2.00 from holding Emerge Commerce or generate 44.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Emerge Commerce vs. Intermap Technologies Corp
Performance |
| Timeline |
| Emerge Commerce |
| Intermap Technologies |
Emerge Commerce and Intermap Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerge Commerce and Intermap Technologies
The main advantage of trading using opposite Emerge Commerce and Intermap Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerge Commerce position performs unexpectedly, Intermap Technologies 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 Intermap Technologies will offset losses from the drop in Intermap Technologies' long position.| Emerge Commerce vs. ESE Entertainment | Emerge Commerce vs. Lite Access Technologies | Emerge Commerce vs. iShares Canadian HYBrid | Emerge Commerce vs. Altagas Cum Red |
| Intermap Technologies vs. Firan Technology Group | Intermap Technologies vs. Vecima Networks | Intermap Technologies vs. D Box Technologies | Intermap Technologies vs. Tucows 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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