Correlation Between EMagin and Neonode
Can any of the company-specific risk be diversified away by investing in both EMagin and Neonode 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 EMagin and Neonode into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EMagin and Neonode, you can compare the effects of market volatilities on EMagin and Neonode 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 EMagin with a short position of Neonode. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMagin and Neonode.
Diversification Opportunities for EMagin and Neonode
Good diversification
The 3 months correlation between EMagin and Neonode is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding EMagin and Neonode in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neonode and EMagin 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 EMagin are associated (or correlated) with Neonode. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neonode has no effect on the direction of EMagin i.e., EMagin and Neonode go up and down completely randomly.
Pair Corralation between EMagin and Neonode
If you would invest 836.00 in Neonode on August 28, 2024 and sell it today you would lose (2.00) from holding Neonode or give up 0.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
EMagin vs. Neonode
Performance |
| Timeline |
| EMagin |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Neonode |
EMagin and Neonode Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMagin and Neonode
The main advantage of trading using opposite EMagin and Neonode positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMagin position performs unexpectedly, Neonode 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 Neonode will offset losses from the drop in Neonode's long position.| EMagin vs. KULR Technology Group | EMagin vs. Ouster Inc | EMagin vs. LightPath Technologies | EMagin vs. Daktronics |
| Neonode vs. LightPath Technologies | Neonode vs. Methode Electronics | Neonode vs. OSI Systems | Neonode vs. Plexus Corp |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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