Correlation Between Microsoft and LogicMark
Can any of the company-specific risk be diversified away by investing in both Microsoft and LogicMark 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 Microsoft and LogicMark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and LogicMark, you can compare the effects of market volatilities on Microsoft and LogicMark 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 Microsoft with a short position of LogicMark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and LogicMark.
Diversification Opportunities for Microsoft and LogicMark
Very good diversification
The 3 months correlation between Microsoft and LogicMark is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and LogicMark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LogicMark and Microsoft 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 Microsoft are associated (or correlated) with LogicMark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LogicMark has no effect on the direction of Microsoft i.e., Microsoft and LogicMark go up and down completely randomly.
Pair Corralation between Microsoft and LogicMark
Given the investment horizon of 90 days Microsoft is expected to generate 0.16 times more return on investment than LogicMark. However, Microsoft is 6.18 times less risky than LogicMark. It trades about 0.01 of its potential returns per unit of risk. LogicMark is currently generating about -0.11 per unit of risk. If you would invest 41,098 in Microsoft on November 3, 2024 and sell it today you would earn a total of 408.00 from holding Microsoft or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microsoft vs. LogicMark
Performance |
| Timeline |
| Microsoft |
| LogicMark |
Microsoft and LogicMark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and LogicMark
The main advantage of trading using opposite Microsoft and LogicMark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, LogicMark 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 LogicMark will offset losses from the drop in LogicMark's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Adobe Systems Incorporated | Microsoft vs. Crowdstrike Holdings |
| LogicMark vs. Guardforce AI Co | LogicMark vs. Knightscope | LogicMark vs. Bridger Aerospace Group | LogicMark 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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