Correlation Between ISign Media and Maritime Launch
Can any of the company-specific risk be diversified away by investing in both ISign Media and Maritime Launch 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 ISign Media and Maritime Launch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iSign Media Solutions and Maritime Launch Services, you can compare the effects of market volatilities on ISign Media and Maritime Launch 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 ISign Media with a short position of Maritime Launch. Check out your portfolio center. Please also check ongoing floating volatility patterns of ISign Media and Maritime Launch.
Diversification Opportunities for ISign Media and Maritime Launch
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between ISign and Maritime is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding iSign Media Solutions and Maritime Launch Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maritime Launch Services and ISign Media 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 iSign Media Solutions are associated (or correlated) with Maritime Launch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maritime Launch Services has no effect on the direction of ISign Media i.e., ISign Media and Maritime Launch go up and down completely randomly.
Pair Corralation between ISign Media and Maritime Launch
Assuming the 90 days horizon iSign Media Solutions is expected to generate 6.88 times more return on investment than Maritime Launch. However, ISign Media is 6.88 times more volatile than Maritime Launch Services. It trades about 0.07 of its potential returns per unit of risk. Maritime Launch Services is currently generating about 0.01 per unit of risk. If you would invest 1.00 in iSign Media Solutions on September 2, 2024 and sell it today you would earn a total of 1,395 from holding iSign Media Solutions or generate 139500.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iSign Media Solutions vs. Maritime Launch Services
Performance |
| Timeline |
| iSign Media Solutions |
| Maritime Launch Services |
ISign Media and Maritime Launch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ISign Media and Maritime Launch
The main advantage of trading using opposite ISign Media and Maritime Launch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ISign Media position performs unexpectedly, Maritime Launch 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 Maritime Launch will offset losses from the drop in Maritime Launch's long position.| ISign Media vs. Moovly Media | ISign Media vs. Lite Access Technologies | ISign Media vs. Braille Energy Systems | ISign Media vs. Solar Alliance Energy |
| Maritime Launch vs. Firan Technology Group | Maritime Launch vs. AnalytixInsight | Maritime Launch vs. Baylin Technologies | Maritime Launch vs. Bewhere 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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