Correlation Between Iveda Solutions and Supercom
Can any of the company-specific risk be diversified away by investing in both Iveda Solutions and Supercom 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 Iveda Solutions and Supercom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iveda Solutions and Supercom, you can compare the effects of market volatilities on Iveda Solutions and Supercom 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 Iveda Solutions with a short position of Supercom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iveda Solutions and Supercom.
Diversification Opportunities for Iveda Solutions and Supercom
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Iveda and Supercom is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Iveda Solutions and Supercom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supercom and Iveda Solutions 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 Iveda Solutions are associated (or correlated) with Supercom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supercom has no effect on the direction of Iveda Solutions i.e., Iveda Solutions and Supercom go up and down completely randomly.
Pair Corralation between Iveda Solutions and Supercom
Given the investment horizon of 90 days Iveda Solutions is expected to under-perform the Supercom. In addition to that, Iveda Solutions is 1.57 times more volatile than Supercom. It trades about -0.04 of its total potential returns per unit of risk. Supercom is currently generating about 0.0 per unit of volatility. If you would invest 420.00 in Supercom on August 24, 2024 and sell it today you would lose (68.00) from holding Supercom or give up 16.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iveda Solutions vs. Supercom
Performance |
| Timeline |
| Iveda Solutions |
| Supercom |
Iveda Solutions and Supercom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iveda Solutions and Supercom
The main advantage of trading using opposite Iveda Solutions and Supercom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iveda Solutions position performs unexpectedly, Supercom 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 Supercom will offset losses from the drop in Supercom's long position.| Iveda Solutions vs. Guardforce AI Co | Iveda Solutions vs. Bridger Aerospace Group | Iveda Solutions vs. Supercom | Iveda Solutions vs. Guardforce AI Co |
| Supercom vs. Zedcor Inc | Supercom vs. SSC Security Services | Supercom vs. Blue Line Protection | Supercom vs. Guardforce AI Co |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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