Correlation Between Iveda Solutions and CEA Industries
Can any of the company-specific risk be diversified away by investing in both Iveda Solutions and CEA Industries 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 CEA Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iveda Solutions Warrant and CEA Industries Warrant, you can compare the effects of market volatilities on Iveda Solutions and CEA Industries 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 CEA Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iveda Solutions and CEA Industries.
Diversification Opportunities for Iveda Solutions and CEA Industries
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Iveda and CEA is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Iveda Solutions Warrant and CEA Industries Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEA Industries Warrant 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 Warrant are associated (or correlated) with CEA Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEA Industries Warrant has no effect on the direction of Iveda Solutions i.e., Iveda Solutions and CEA Industries go up and down completely randomly.
Pair Corralation between Iveda Solutions and CEA Industries
Assuming the 90 days horizon Iveda Solutions Warrant is expected to generate 1.77 times more return on investment than CEA Industries. However, Iveda Solutions is 1.77 times more volatile than CEA Industries Warrant. It trades about 0.29 of its potential returns per unit of risk. CEA Industries Warrant is currently generating about 0.03 per unit of risk. If you would invest 2.00 in Iveda Solutions Warrant on August 31, 2024 and sell it today you would earn a total of 1.95 from holding Iveda Solutions Warrant or generate 97.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 30.77% |
| Values | Daily Returns |
Iveda Solutions Warrant vs. CEA Industries Warrant
Performance |
| Timeline |
| Iveda Solutions Warrant |
| CEA Industries Warrant |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Iveda Solutions and CEA Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iveda Solutions and CEA Industries
The main advantage of trading using opposite Iveda Solutions and CEA Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iveda Solutions position performs unexpectedly, CEA Industries 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 CEA Industries will offset losses from the drop in CEA Industries' long position.| Iveda Solutions vs. Iveda Solutions | Iveda Solutions vs. Aclarion | Iveda Solutions vs. Pasithea Therapeutics Corp | Iveda Solutions vs. Thayer Ventures Acquisition |
| CEA Industries vs. CEA Industries | CEA Industries vs. Thayer Ventures Acquisition | CEA Industries vs. Iveda Solutions Warrant | CEA Industries vs. HUMANA 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |