Correlation Between Image Protect and NeoMedia Technologies
Can any of the company-specific risk be diversified away by investing in both Image Protect and NeoMedia 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 Image Protect and NeoMedia Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Image Protect and NeoMedia Technologies, you can compare the effects of market volatilities on Image Protect and NeoMedia 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 Image Protect with a short position of NeoMedia Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Image Protect and NeoMedia Technologies.
Diversification Opportunities for Image Protect and NeoMedia Technologies
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Image and NeoMedia is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Image Protect and NeoMedia Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NeoMedia Technologies and Image Protect 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 Image Protect are associated (or correlated) with NeoMedia Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NeoMedia Technologies has no effect on the direction of Image Protect i.e., Image Protect and NeoMedia Technologies go up and down completely randomly.
Pair Corralation between Image Protect and NeoMedia Technologies
If you would invest 0.01 in Image Protect on August 28, 2024 and sell it today you would earn a total of 0.01 from holding Image Protect or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 1.59% |
| Values | Daily Returns |
Image Protect vs. NeoMedia Technologies
Performance |
| Timeline |
| Image Protect |
| NeoMedia Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Image Protect and NeoMedia Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Image Protect and NeoMedia Technologies
The main advantage of trading using opposite Image Protect and NeoMedia Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Image Protect position performs unexpectedly, NeoMedia 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 NeoMedia Technologies will offset losses from the drop in NeoMedia Technologies' long position.| Image Protect vs. Salesforce | Image Protect vs. SAP SE ADR | Image Protect vs. ServiceNow | Image Protect vs. Intuit Inc |
| NeoMedia Technologies vs. AB International Group | NeoMedia Technologies vs. Peer To Peer | NeoMedia Technologies vs. AppYea Inc | NeoMedia Technologies vs. BASE 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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