Correlation Between Remark Holdings and Rekor Systems
Can any of the company-specific risk be diversified away by investing in both Remark Holdings and Rekor Systems 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 Remark Holdings and Rekor Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Remark Holdings and Rekor Systems, you can compare the effects of market volatilities on Remark Holdings and Rekor Systems 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 Remark Holdings with a short position of Rekor Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Remark Holdings and Rekor Systems.
Diversification Opportunities for Remark Holdings and Rekor Systems
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Remark and Rekor is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Remark Holdings and Rekor Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rekor Systems and Remark Holdings 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 Remark Holdings are associated (or correlated) with Rekor Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rekor Systems has no effect on the direction of Remark Holdings i.e., Remark Holdings and Rekor Systems go up and down completely randomly.
Pair Corralation between Remark Holdings and Rekor Systems
If you would invest 96.00 in Remark Holdings on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Remark Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Remark Holdings vs. Rekor Systems
Performance |
| Timeline |
| Remark Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Rekor Systems |
Remark Holdings and Rekor Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Remark Holdings and Rekor Systems
The main advantage of trading using opposite Remark Holdings and Rekor Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Remark Holdings position performs unexpectedly, Rekor Systems 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 Rekor Systems will offset losses from the drop in Rekor Systems' long position.| Remark Holdings vs. Yext Inc | Remark Holdings vs. Bandwidth | Remark Holdings vs. Pagaya Technologies | Remark Holdings vs. Arqit Quantum |
| Rekor Systems vs. Aurora Mobile | Rekor Systems vs. Arqit Quantum | Rekor Systems vs. Bridgeline Digital | Rekor Systems vs. Repay Holdings Corp |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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