Correlation Between Logiq and Auddia
Can any of the company-specific risk be diversified away by investing in both Logiq and Auddia 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 Logiq and Auddia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Logiq Inc and Auddia Inc, you can compare the effects of market volatilities on Logiq and Auddia 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 Logiq with a short position of Auddia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logiq and Auddia.
Diversification Opportunities for Logiq and Auddia
Average diversification
The 3 months correlation between Logiq and Auddia is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Logiq Inc and Auddia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auddia Inc and Logiq 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 Logiq Inc are associated (or correlated) with Auddia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auddia Inc has no effect on the direction of Logiq i.e., Logiq and Auddia go up and down completely randomly.
Pair Corralation between Logiq and Auddia
Given the investment horizon of 90 days Logiq Inc is expected to generate 6.54 times more return on investment than Auddia. However, Logiq is 6.54 times more volatile than Auddia Inc. It trades about 0.3 of its potential returns per unit of risk. Auddia Inc is currently generating about -0.25 per unit of risk. If you would invest 0.90 in Logiq Inc on November 9, 2024 and sell it today you would earn a total of 0.75 from holding Logiq Inc or generate 83.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Logiq Inc vs. Auddia Inc
Performance |
| Timeline |
| Logiq Inc |
| Auddia Inc |
Logiq and Auddia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logiq and Auddia
The main advantage of trading using opposite Logiq and Auddia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logiq position performs unexpectedly, Auddia 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 Auddia will offset losses from the drop in Auddia's long position.| Logiq vs. Tenet Fintech Group | Logiq vs. FansUnite Entertainment | Logiq vs. FingerMotion | Logiq vs. GoLogiq |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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