Correlation Between LogicMark and Knightscope
Can any of the company-specific risk be diversified away by investing in both LogicMark and Knightscope 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 Knightscope into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LogicMark and Knightscope, you can compare the effects of market volatilities on LogicMark and Knightscope 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 Knightscope. Check out your portfolio center. Please also check ongoing floating volatility patterns of LogicMark and Knightscope.
Diversification Opportunities for LogicMark and Knightscope
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between LogicMark and Knightscope is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding LogicMark and Knightscope in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knightscope 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 Knightscope. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knightscope has no effect on the direction of LogicMark i.e., LogicMark and Knightscope go up and down completely randomly.
Pair Corralation between LogicMark and Knightscope
Given the investment horizon of 90 days LogicMark is expected to under-perform the Knightscope. But the stock apears to be less risky and, when comparing its historical volatility, LogicMark is 1.02 times less risky than Knightscope. The stock trades about -0.11 of its potential returns per unit of risk. The Knightscope is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,530 in Knightscope on November 3, 2024 and sell it today you would lose (1,479) from holding Knightscope or give up 58.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
LogicMark vs. Knightscope
Performance |
| Timeline |
| LogicMark |
| Knightscope |
LogicMark and Knightscope Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LogicMark and Knightscope
The main advantage of trading using opposite LogicMark and Knightscope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LogicMark position performs unexpectedly, Knightscope 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 Knightscope will offset losses from the drop in Knightscope's long position.| LogicMark vs. Guardforce AI Co | LogicMark vs. Knightscope | LogicMark vs. Bridger Aerospace Group | LogicMark vs. Iveda Solutions |
| Knightscope vs. LogicMark | Knightscope vs. Guardforce AI Co | Knightscope vs. Bridger Aerospace Group | Knightscope 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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