Correlation Between 01 Communique and Intermap Technologies
Can any of the company-specific risk be diversified away by investing in both 01 Communique and Intermap Technologies 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 01 Communique and Intermap Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 01 Communique Laboratory and Intermap Technologies Corp, you can compare the effects of market volatilities on 01 Communique and Intermap Technologies 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 01 Communique with a short position of Intermap Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of 01 Communique and Intermap Technologies.
Diversification Opportunities for 01 Communique and Intermap Technologies
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OONEF and Intermap is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding 01 Communique Laboratory and Intermap Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermap Technologies and 01 Communique 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 01 Communique Laboratory are associated (or correlated) with Intermap Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermap Technologies has no effect on the direction of 01 Communique i.e., 01 Communique and Intermap Technologies go up and down completely randomly.
Pair Corralation between 01 Communique and Intermap Technologies
Assuming the 90 days horizon 01 Communique Laboratory is expected to under-perform the Intermap Technologies. In addition to that, 01 Communique is 1.44 times more volatile than Intermap Technologies Corp. It trades about -0.15 of its total potential returns per unit of risk. Intermap Technologies Corp is currently generating about 0.04 per unit of volatility. If you would invest 123.00 in Intermap Technologies Corp on January 14, 2025 and sell it today you would earn a total of 1.00 from holding Intermap Technologies Corp or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
01 Communique Laboratory vs. Intermap Technologies Corp
Performance |
| Timeline |
| 01 Communique Laboratory |
| Intermap Technologies |
01 Communique and Intermap Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 01 Communique and Intermap Technologies
The main advantage of trading using opposite 01 Communique and Intermap Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 01 Communique position performs unexpectedly, Intermap Technologies 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 Intermap Technologies will offset losses from the drop in Intermap Technologies' long position.The idea behind 01 Communique Laboratory and Intermap Technologies Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Intermap Technologies vs. LifeSpeak | Intermap Technologies vs. RenoWorks Software | Intermap Technologies vs. 01 Communique Laboratory | Intermap Technologies vs. RESAAS Services |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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