Correlation Between EMCORE and Intellicheck Mobilisa
Can any of the company-specific risk be diversified away by investing in both EMCORE 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 EMCORE and Intellicheck Mobilisa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EMCORE and Intellicheck Mobilisa, you can compare the effects of market volatilities on EMCORE 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 EMCORE with a short position of Intellicheck Mobilisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMCORE and Intellicheck Mobilisa.
Diversification Opportunities for EMCORE and Intellicheck Mobilisa
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EMCORE and Intellicheck is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding EMCORE and Intellicheck Mobilisa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellicheck Mobilisa and EMCORE 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 EMCORE 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 EMCORE i.e., EMCORE and Intellicheck Mobilisa go up and down completely randomly.
Pair Corralation between EMCORE and Intellicheck Mobilisa
Given the investment horizon of 90 days EMCORE is expected to generate 0.24 times more return on investment than Intellicheck Mobilisa. However, EMCORE is 4.13 times less risky than Intellicheck Mobilisa. It trades about 0.1 of its potential returns per unit of risk. Intellicheck Mobilisa is currently generating about -0.01 per unit of risk. If you would invest 296.00 in EMCORE on October 20, 2024 and sell it today you would earn a total of 4.00 from holding EMCORE or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EMCORE vs. Intellicheck Mobilisa
Performance |
| Timeline |
| EMCORE |
| Intellicheck Mobilisa |
EMCORE and Intellicheck Mobilisa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMCORE and Intellicheck Mobilisa
The main advantage of trading using opposite EMCORE and Intellicheck Mobilisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMCORE 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.The idea behind EMCORE and Intellicheck Mobilisa 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.| Intellicheck Mobilisa vs. Boardwalktech Software Corp | Intellicheck Mobilisa vs. Research Solutions | Intellicheck Mobilisa vs. ON24 Inc | Intellicheck Mobilisa vs. Olo 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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