Correlation Between NeoMedia Technologies and Image Protect
Can any of the company-specific risk be diversified away by investing in both NeoMedia Technologies and Image Protect 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 NeoMedia Technologies and Image Protect into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NeoMedia Technologies and Image Protect, you can compare the effects of market volatilities on NeoMedia Technologies and Image Protect 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 NeoMedia Technologies with a short position of Image Protect. Check out your portfolio center. Please also check ongoing floating volatility patterns of NeoMedia Technologies and Image Protect.
Diversification Opportunities for NeoMedia Technologies and Image Protect
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NeoMedia and Image is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding NeoMedia Technologies and Image Protect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Image Protect and NeoMedia Technologies 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 NeoMedia Technologies are associated (or correlated) with Image Protect. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Image Protect has no effect on the direction of NeoMedia Technologies i.e., NeoMedia Technologies and Image Protect go up and down completely randomly.
Pair Corralation between NeoMedia Technologies and Image Protect
If you would invest 0.02 in Image Protect on August 24, 2024 and sell it today you would lose (0.01) from holding Image Protect or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
NeoMedia Technologies vs. Image Protect
Performance |
| Timeline |
| NeoMedia Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Image Protect |
NeoMedia Technologies and Image Protect Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NeoMedia Technologies and Image Protect
The main advantage of trading using opposite NeoMedia Technologies and Image Protect positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NeoMedia Technologies position performs unexpectedly, Image Protect 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 Image Protect will offset losses from the drop in Image Protect's long position.| NeoMedia Technologies vs. AB International Group | NeoMedia Technologies vs. Peer To Peer | NeoMedia Technologies vs. AppYea Inc | NeoMedia Technologies vs. BASE Inc |
| Image Protect vs. AB International Group | Image Protect vs. Bowmo Inc | Image Protect vs. Protek Capital | Image Protect vs. Ackroo 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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