Correlation Between Intermap Technologies and TECSYS
Can any of the company-specific risk be diversified away by investing in both Intermap Technologies and TECSYS 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 Intermap Technologies and TECSYS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intermap Technologies Corp and TECSYS Inc, you can compare the effects of market volatilities on Intermap Technologies and TECSYS 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 Intermap Technologies with a short position of TECSYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermap Technologies and TECSYS.
Diversification Opportunities for Intermap Technologies and TECSYS
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Intermap and TECSYS is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Intermap Technologies Corp and TECSYS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TECSYS Inc and Intermap Technologies 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 Intermap Technologies Corp are associated (or correlated) with TECSYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TECSYS Inc has no effect on the direction of Intermap Technologies i.e., Intermap Technologies and TECSYS go up and down completely randomly.
Pair Corralation between Intermap Technologies and TECSYS
Assuming the 90 days trading horizon Intermap Technologies Corp is expected to generate 2.31 times more return on investment than TECSYS. However, Intermap Technologies is 2.31 times more volatile than TECSYS Inc. It trades about 0.13 of its potential returns per unit of risk. TECSYS Inc is currently generating about 0.08 per unit of risk. If you would invest 58.00 in Intermap Technologies Corp on September 14, 2024 and sell it today you would earn a total of 152.00 from holding Intermap Technologies Corp or generate 262.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intermap Technologies Corp vs. TECSYS Inc
Performance |
| Timeline |
| Intermap Technologies |
| TECSYS Inc |
Intermap Technologies and TECSYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermap Technologies and TECSYS
The main advantage of trading using opposite Intermap Technologies and TECSYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermap Technologies position performs unexpectedly, TECSYS 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 TECSYS will offset losses from the drop in TECSYS's long position.| Intermap Technologies vs. Adcore Inc | Intermap Technologies vs. Emerge Commerce | Intermap Technologies vs. Quisitive Technology Solutions | Intermap Technologies vs. DGTL Holdings |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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