Correlation Between LogicMark and ADT
Can any of the company-specific risk be diversified away by investing in both LogicMark and ADT 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 LogicMark and ADT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LogicMark and ADT Inc, you can compare the effects of market volatilities on LogicMark and ADT 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 LogicMark with a short position of ADT. Check out your portfolio center. Please also check ongoing floating volatility patterns of LogicMark and ADT.
Diversification Opportunities for LogicMark and ADT
Good diversification
The 3 months correlation between LogicMark and ADT is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding LogicMark and ADT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADT Inc and LogicMark 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 LogicMark are associated (or correlated) with ADT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADT Inc has no effect on the direction of LogicMark i.e., LogicMark and ADT go up and down completely randomly.
Pair Corralation between LogicMark and ADT
Given the investment horizon of 90 days LogicMark is expected to under-perform the ADT. In addition to that, LogicMark is 3.19 times more volatile than ADT Inc. It trades about -0.08 of its total potential returns per unit of risk. ADT Inc is currently generating about 0.0 per unit of volatility. If you would invest 917.00 in ADT Inc on August 28, 2024 and sell it today you would lose (152.00) from holding ADT Inc or give up 16.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LogicMark vs. ADT Inc
Performance |
| Timeline |
| LogicMark |
| ADT Inc |
LogicMark and ADT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LogicMark and ADT
The main advantage of trading using opposite LogicMark and ADT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LogicMark position performs unexpectedly, ADT 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 ADT will offset losses from the drop in ADT's long position.| LogicMark vs. Guardforce AI Co | LogicMark vs. Knightscope | LogicMark vs. Bridger Aerospace Group | LogicMark vs. Iveda Solutions |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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