Correlation Between Locafy and CorMedix
Can any of the company-specific risk be diversified away by investing in both Locafy and CorMedix 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 Locafy and CorMedix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Locafy Limited and CorMedix, you can compare the effects of market volatilities on Locafy and CorMedix 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 Locafy with a short position of CorMedix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Locafy and CorMedix.
Diversification Opportunities for Locafy and CorMedix
Very weak diversification
The 3 months correlation between Locafy and CorMedix is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Locafy Limited and CorMedix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CorMedix and Locafy 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 Locafy Limited are associated (or correlated) with CorMedix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CorMedix has no effect on the direction of Locafy i.e., Locafy and CorMedix go up and down completely randomly.
Pair Corralation between Locafy and CorMedix
Assuming the 90 days horizon Locafy Limited is expected to generate 33.13 times more return on investment than CorMedix. However, Locafy is 33.13 times more volatile than CorMedix. It trades about 0.16 of its potential returns per unit of risk. CorMedix is currently generating about 0.07 per unit of risk. If you would invest 20.00 in Locafy Limited on August 30, 2024 and sell it today you would earn a total of 833.00 from holding Locafy Limited or generate 4165.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 57.37% |
| Values | Daily Returns |
Locafy Limited vs. CorMedix
Performance |
| Timeline |
| Locafy Limited |
| CorMedix |
Locafy and CorMedix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Locafy and CorMedix
The main advantage of trading using opposite Locafy and CorMedix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Locafy position performs unexpectedly, CorMedix 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 CorMedix will offset losses from the drop in CorMedix's long position.| Locafy vs. Locafy | Locafy vs. Rail Vision Ltd | Locafy vs. Heartbeam Warrant | Locafy vs. Iveda Solutions Warrant |
| CorMedix vs. Tarsus Pharmaceuticals | CorMedix vs. Aldeyra | CorMedix vs. Travere Therapeutics | CorMedix vs. Eton Pharmaceuticals |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |