Correlation Between VerifyMe and Moving IMage
Can any of the company-specific risk be diversified away by investing in both VerifyMe and Moving IMage 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 Moving IMage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VerifyMe and Moving iMage Technologies, you can compare the effects of market volatilities on VerifyMe and Moving IMage 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 Moving IMage. Check out your portfolio center. Please also check ongoing floating volatility patterns of VerifyMe and Moving IMage.
Diversification Opportunities for VerifyMe and Moving IMage
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VerifyMe and Moving is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding VerifyMe and Moving iMage Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moving iMage Technologies 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 Moving IMage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moving iMage Technologies has no effect on the direction of VerifyMe i.e., VerifyMe and Moving IMage go up and down completely randomly.
Pair Corralation between VerifyMe and Moving IMage
Given the investment horizon of 90 days VerifyMe is expected to under-perform the Moving IMage. But the stock apears to be less risky and, when comparing its historical volatility, VerifyMe is 1.29 times less risky than Moving IMage. The stock trades about -0.08 of its potential returns per unit of risk. The Moving iMage Technologies is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 70.00 in Moving iMage Technologies on September 2, 2024 and sell it today you would lose (4.00) from holding Moving iMage Technologies or give up 5.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VerifyMe vs. Moving iMage Technologies
Performance |
| Timeline |
| VerifyMe |
| Moving iMage Technologies |
VerifyMe and Moving IMage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VerifyMe and Moving IMage
The main advantage of trading using opposite VerifyMe and Moving IMage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VerifyMe position performs unexpectedly, Moving IMage 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 Moving IMage will offset losses from the drop in Moving IMage's long position.The idea behind VerifyMe and Moving iMage Technologies 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.| Moving IMage vs. Franklin Wireless Corp | Moving IMage vs. Wialan Technologies | Moving IMage vs. TPT Global Tech | Moving IMage vs. Comtech Telecommunications Corp |
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 Managers module to screen money managers from public funds and ETFs managed around the world.
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