Correlation Between LogicMark and Daqo New
Can any of the company-specific risk be diversified away by investing in both LogicMark and Daqo New 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 Daqo New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LogicMark and Daqo New Energy, you can compare the effects of market volatilities on LogicMark and Daqo New 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 Daqo New. Check out your portfolio center. Please also check ongoing floating volatility patterns of LogicMark and Daqo New.
Diversification Opportunities for LogicMark and Daqo New
Excellent diversification
The 3 months correlation between LogicMark and Daqo is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding LogicMark and Daqo New Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daqo New Energy 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 Daqo New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daqo New Energy has no effect on the direction of LogicMark i.e., LogicMark and Daqo New go up and down completely randomly.
Pair Corralation between LogicMark and Daqo New
Given the investment horizon of 90 days LogicMark is expected to under-perform the Daqo New. In addition to that, LogicMark is 1.87 times more volatile than Daqo New Energy. It trades about -0.09 of its total potential returns per unit of risk. Daqo New Energy is currently generating about 0.0 per unit of volatility. If you would invest 2,639 in Daqo New Energy on September 1, 2024 and sell it today you would lose (636.00) from holding Daqo New Energy or give up 24.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LogicMark vs. Daqo New Energy
Performance |
| Timeline |
| LogicMark |
| Daqo New Energy |
LogicMark and Daqo New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LogicMark and Daqo New
The main advantage of trading using opposite LogicMark and Daqo New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LogicMark position performs unexpectedly, Daqo New 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 Daqo New will offset losses from the drop in Daqo New's long position.| LogicMark vs. Guardforce AI Co | LogicMark vs. Knightscope | LogicMark vs. Bridger Aerospace Group | LogicMark vs. Iveda Solutions |
| Daqo New vs. Axcelis Technologies | Daqo New vs. Kulicke and Soffa | Daqo New vs. Ultra Clean Holdings | Daqo New vs. Cohu Inc |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Transaction History View history of all your transactions and understand their impact on performance |