Correlation Between LogicMark and Canaan
Can any of the company-specific risk be diversified away by investing in both LogicMark and Canaan 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 Canaan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LogicMark and Canaan Inc, you can compare the effects of market volatilities on LogicMark and Canaan 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 Canaan. Check out your portfolio center. Please also check ongoing floating volatility patterns of LogicMark and Canaan.
Diversification Opportunities for LogicMark and Canaan
Very good diversification
The 3 months correlation between LogicMark and Canaan is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding LogicMark and Canaan Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canaan 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 Canaan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canaan Inc has no effect on the direction of LogicMark i.e., LogicMark and Canaan go up and down completely randomly.
Pair Corralation between LogicMark and Canaan
Given the investment horizon of 90 days LogicMark is expected to under-perform the Canaan. In addition to that, LogicMark is 1.29 times more volatile than Canaan Inc. It trades about -0.02 of its total potential returns per unit of risk. Canaan Inc is currently generating about 0.26 per unit of volatility. If you would invest 125.00 in Canaan Inc on September 2, 2024 and sell it today you would earn a total of 87.00 from holding Canaan Inc or generate 69.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LogicMark vs. Canaan Inc
Performance |
| Timeline |
| LogicMark |
| Canaan Inc |
LogicMark and Canaan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LogicMark and Canaan
The main advantage of trading using opposite LogicMark and Canaan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LogicMark position performs unexpectedly, Canaan 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 Canaan will offset losses from the drop in Canaan's long position.| LogicMark vs. Guardforce AI Co | LogicMark vs. Knightscope | LogicMark vs. Bridger Aerospace Group | LogicMark vs. Iveda Solutions |
| Canaan vs. 3D Systems | Canaan vs. NetApp Inc | Canaan vs. Rigetti Computing | Canaan vs. Logitech International SA |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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