Correlation Between VerifyMe and Intellicheck Mobilisa
Can any of the company-specific risk be diversified away by investing in both VerifyMe and Intellicheck Mobilisa 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 VerifyMe and Intellicheck Mobilisa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VerifyMe and Intellicheck Mobilisa, you can compare the effects of market volatilities on VerifyMe and Intellicheck Mobilisa 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 VerifyMe with a short position of Intellicheck Mobilisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of VerifyMe and Intellicheck Mobilisa.
Diversification Opportunities for VerifyMe and Intellicheck Mobilisa
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VerifyMe and Intellicheck is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding VerifyMe and Intellicheck Mobilisa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellicheck Mobilisa and VerifyMe 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 VerifyMe are associated (or correlated) with Intellicheck Mobilisa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intellicheck Mobilisa has no effect on the direction of VerifyMe i.e., VerifyMe and Intellicheck Mobilisa go up and down completely randomly.
Pair Corralation between VerifyMe and Intellicheck Mobilisa
Given the investment horizon of 90 days VerifyMe is expected to under-perform the Intellicheck Mobilisa. In addition to that, VerifyMe is 2.11 times more volatile than Intellicheck Mobilisa. It trades about -0.19 of its total potential returns per unit of risk. Intellicheck Mobilisa is currently generating about -0.01 per unit of volatility. If you would invest 252.00 in Intellicheck Mobilisa on August 31, 2024 and sell it today you would lose (7.00) from holding Intellicheck Mobilisa or give up 2.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VerifyMe vs. Intellicheck Mobilisa
Performance |
| Timeline |
| VerifyMe |
| Intellicheck Mobilisa |
VerifyMe and Intellicheck Mobilisa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VerifyMe and Intellicheck Mobilisa
The main advantage of trading using opposite VerifyMe and Intellicheck Mobilisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VerifyMe position performs unexpectedly, Intellicheck Mobilisa 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 Intellicheck Mobilisa will offset losses from the drop in Intellicheck Mobilisa's long position.The idea behind VerifyMe and Intellicheck Mobilisa 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.| Intellicheck Mobilisa vs. Boardwalktech Software Corp | Intellicheck Mobilisa vs. Research Solutions | Intellicheck Mobilisa vs. OneSoft Solutions | Intellicheck Mobilisa vs. ON24 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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