Correlation Between LogicMark and Iveda Solutions
Can any of the company-specific risk be diversified away by investing in both LogicMark and Iveda Solutions 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 Iveda Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LogicMark and Iveda Solutions, you can compare the effects of market volatilities on LogicMark and Iveda Solutions 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 Iveda Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of LogicMark and Iveda Solutions.
Diversification Opportunities for LogicMark and Iveda Solutions
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LogicMark and Iveda is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding LogicMark and Iveda Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iveda Solutions 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 Iveda Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iveda Solutions has no effect on the direction of LogicMark i.e., LogicMark and Iveda Solutions go up and down completely randomly.
Pair Corralation between LogicMark and Iveda Solutions
Given the investment horizon of 90 days LogicMark is expected to under-perform the Iveda Solutions. In addition to that, LogicMark is 1.16 times more volatile than Iveda Solutions. It trades about -0.08 of its total potential returns per unit of risk. Iveda Solutions is currently generating about 0.01 per unit of volatility. If you would invest 558.00 in Iveda Solutions on August 27, 2024 and sell it today you would lose (343.00) from holding Iveda Solutions or give up 61.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LogicMark vs. Iveda Solutions
Performance |
| Timeline |
| LogicMark |
| Iveda Solutions |
LogicMark and Iveda Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LogicMark and Iveda Solutions
The main advantage of trading using opposite LogicMark and Iveda Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LogicMark position performs unexpectedly, Iveda Solutions 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 Iveda Solutions will offset losses from the drop in Iveda Solutions' long position.| LogicMark vs. Guardforce AI Co | LogicMark vs. Knightscope | LogicMark vs. Bridger Aerospace Group | LogicMark vs. Iveda Solutions |
| Iveda Solutions vs. Guardforce AI Co | Iveda Solutions vs. Bridger Aerospace Group | Iveda Solutions vs. Supercom | Iveda Solutions 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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