Correlation Between Intellicheck Mobilisa and TransAct Technologies
Can any of the company-specific risk be diversified away by investing in both Intellicheck Mobilisa and TransAct 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 Intellicheck Mobilisa and TransAct Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intellicheck Mobilisa and TransAct Technologies Incorporated, you can compare the effects of market volatilities on Intellicheck Mobilisa and TransAct 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 Intellicheck Mobilisa with a short position of TransAct Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intellicheck Mobilisa and TransAct Technologies.
Diversification Opportunities for Intellicheck Mobilisa and TransAct Technologies
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intellicheck and TransAct is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Intellicheck Mobilisa and TransAct Technologies Incorpor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TransAct Technologies and Intellicheck Mobilisa 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 Intellicheck Mobilisa are associated (or correlated) with TransAct Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TransAct Technologies has no effect on the direction of Intellicheck Mobilisa i.e., Intellicheck Mobilisa and TransAct Technologies go up and down completely randomly.
Pair Corralation between Intellicheck Mobilisa and TransAct Technologies
Considering the 90-day investment horizon Intellicheck Mobilisa is expected to generate 1.72 times more return on investment than TransAct Technologies. However, Intellicheck Mobilisa is 1.72 times more volatile than TransAct Technologies Incorporated. It trades about 0.16 of its potential returns per unit of risk. TransAct Technologies Incorporated is currently generating about 0.04 per unit of risk. If you would invest 242.00 in Intellicheck Mobilisa on August 27, 2024 and sell it today you would earn a total of 29.00 from holding Intellicheck Mobilisa or generate 11.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intellicheck Mobilisa vs. TransAct Technologies Incorpor
Performance |
| Timeline |
| Intellicheck Mobilisa |
| TransAct Technologies |
Intellicheck Mobilisa and TransAct Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intellicheck Mobilisa and TransAct Technologies
The main advantage of trading using opposite Intellicheck Mobilisa and TransAct Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intellicheck Mobilisa position performs unexpectedly, TransAct 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 TransAct Technologies will offset losses from the drop in TransAct Technologies' long position.| Intellicheck Mobilisa vs. Plexus Corp | Intellicheck Mobilisa vs. Jabil Circuit | Intellicheck Mobilisa vs. Sanmina | Intellicheck Mobilisa vs. Methode Electronics |
| TransAct Technologies vs. AstroNova | TransAct Technologies vs. Key Tronic | TransAct Technologies vs. FARO Technologies | TransAct Technologies vs. Hooker Furniture |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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