Correlation Between Logiq and Infobird
Can any of the company-specific risk be diversified away by investing in both Logiq and Infobird 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 Infobird into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Logiq Inc and Infobird Co, you can compare the effects of market volatilities on Logiq and Infobird 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 Infobird. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logiq and Infobird.
Diversification Opportunities for Logiq and Infobird
Excellent diversification
The 3 months correlation between Logiq and Infobird is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Logiq Inc and Infobird Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infobird 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 Infobird. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infobird has no effect on the direction of Logiq i.e., Logiq and Infobird go up and down completely randomly.
Pair Corralation between Logiq and Infobird
Given the investment horizon of 90 days Logiq Inc is expected to under-perform the Infobird. In addition to that, Logiq is 2.1 times more volatile than Infobird Co. It trades about -0.05 of its total potential returns per unit of risk. Infobird Co is currently generating about 0.02 per unit of volatility. If you would invest 195.00 in Infobird Co on August 28, 2024 and sell it today you would lose (3.00) from holding Infobird Co or give up 1.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Logiq Inc vs. Infobird Co
Performance |
| Timeline |
| Logiq Inc |
| Infobird |
Logiq and Infobird Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logiq and Infobird
The main advantage of trading using opposite Logiq and Infobird positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logiq position performs unexpectedly, Infobird 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 Infobird will offset losses from the drop in Infobird's long position.The idea behind Logiq Inc and Infobird Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |