Correlation Between LogicMark and Blue Line
Can any of the company-specific risk be diversified away by investing in both LogicMark and Blue Line 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 Blue Line into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LogicMark and Blue Line Protection, you can compare the effects of market volatilities on LogicMark and Blue Line 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 Blue Line. Check out your portfolio center. Please also check ongoing floating volatility patterns of LogicMark and Blue Line.
Diversification Opportunities for LogicMark and Blue Line
Very weak diversification
The 3 months correlation between LogicMark and Blue is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding LogicMark and Blue Line Protection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Line Protection 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 Blue Line. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Line Protection has no effect on the direction of LogicMark i.e., LogicMark and Blue Line go up and down completely randomly.
Pair Corralation between LogicMark and Blue Line
Given the investment horizon of 90 days LogicMark is expected to under-perform the Blue Line. But the stock apears to be less risky and, when comparing its historical volatility, LogicMark is 2.62 times less risky than Blue Line. The stock trades about -0.08 of its potential returns per unit of risk. The Blue Line Protection is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 21.00 in Blue Line Protection on August 28, 2024 and sell it today you would lose (14.33) from holding Blue Line Protection or give up 68.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LogicMark vs. Blue Line Protection
Performance |
| Timeline |
| LogicMark |
| Blue Line Protection |
LogicMark and Blue Line Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LogicMark and Blue Line
The main advantage of trading using opposite LogicMark and Blue Line positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LogicMark position performs unexpectedly, Blue Line 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 Blue Line will offset losses from the drop in Blue Line's long position.| LogicMark vs. Guardforce AI Co | LogicMark vs. Knightscope | LogicMark vs. Bridger Aerospace Group | LogicMark vs. Iveda Solutions |
| Blue Line vs. BIO Key International | Blue Line vs. LogicMark | Blue Line vs. Knightscope | Blue Line vs. Guardforce AI Co |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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