Correlation Between Smartmetric and Looking Glass
Can any of the company-specific risk be diversified away by investing in both Smartmetric and Looking Glass 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 Smartmetric and Looking Glass into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smartmetric and Looking Glass Labs, you can compare the effects of market volatilities on Smartmetric and Looking Glass 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 Smartmetric with a short position of Looking Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smartmetric and Looking Glass.
Diversification Opportunities for Smartmetric and Looking Glass
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Smartmetric and Looking is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Smartmetric and Looking Glass Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Looking Glass Labs and Smartmetric 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 Smartmetric are associated (or correlated) with Looking Glass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Looking Glass Labs has no effect on the direction of Smartmetric i.e., Smartmetric and Looking Glass go up and down completely randomly.
Pair Corralation between Smartmetric and Looking Glass
Given the investment horizon of 90 days Smartmetric is expected to generate 2.64 times more return on investment than Looking Glass. However, Smartmetric is 2.64 times more volatile than Looking Glass Labs. It trades about 0.1 of its potential returns per unit of risk. Looking Glass Labs is currently generating about 0.04 per unit of risk. If you would invest 0.11 in Smartmetric on September 2, 2024 and sell it today you would lose (0.10) from holding Smartmetric or give up 90.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 17.54% |
| Values | Daily Returns |
Smartmetric vs. Looking Glass Labs
Performance |
| Timeline |
| Smartmetric |
| Looking Glass Labs |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Smartmetric and Looking Glass Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smartmetric and Looking Glass
The main advantage of trading using opposite Smartmetric and Looking Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smartmetric position performs unexpectedly, Looking Glass 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 Looking Glass will offset losses from the drop in Looking Glass' long position.| Smartmetric vs. Telos Corp | Smartmetric vs. Fuse Science | Smartmetric vs. Data443 Risk Mitigation | Smartmetric vs. Taoping |
| Looking Glass vs. Fuse Science | Looking Glass vs. Data Call Technologi | Looking Glass vs. Rightscorp | Looking Glass vs. Alarum Technologies |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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