Correlation Between Intermap Technologies and LifeSpeak
Can any of the company-specific risk be diversified away by investing in both Intermap Technologies and LifeSpeak 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 LifeSpeak 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 LifeSpeak, you can compare the effects of market volatilities on Intermap Technologies and LifeSpeak 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 LifeSpeak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermap Technologies and LifeSpeak.
Diversification Opportunities for Intermap Technologies and LifeSpeak
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Intermap and LifeSpeak is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Intermap Technologies Corp and LifeSpeak in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LifeSpeak 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 LifeSpeak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LifeSpeak has no effect on the direction of Intermap Technologies i.e., Intermap Technologies and LifeSpeak go up and down completely randomly.
Pair Corralation between Intermap Technologies and LifeSpeak
Assuming the 90 days horizon Intermap Technologies Corp is expected to generate 0.81 times more return on investment than LifeSpeak. However, Intermap Technologies Corp is 1.24 times less risky than LifeSpeak. It trades about 0.26 of its potential returns per unit of risk. LifeSpeak is currently generating about -0.21 per unit of risk. If you would invest 89.00 in Intermap Technologies Corp on August 29, 2024 and sell it today you would earn a total of 31.00 from holding Intermap Technologies Corp or generate 34.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Intermap Technologies Corp vs. LifeSpeak
Performance |
| Timeline |
| Intermap Technologies |
| LifeSpeak |
Intermap Technologies and LifeSpeak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermap Technologies and LifeSpeak
The main advantage of trading using opposite Intermap Technologies and LifeSpeak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermap Technologies position performs unexpectedly, LifeSpeak 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 LifeSpeak will offset losses from the drop in LifeSpeak's long position.| Intermap Technologies vs. LifeSpeak | Intermap Technologies vs. RenoWorks Software | Intermap Technologies vs. 01 Communique Laboratory | Intermap Technologies vs. RESAAS Services |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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