Correlation Between Clearfield and Intellicheck Mobilisa
Can any of the company-specific risk be diversified away by investing in both Clearfield 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 Clearfield and Intellicheck Mobilisa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clearfield and Intellicheck Mobilisa, you can compare the effects of market volatilities on Clearfield 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 Clearfield with a short position of Intellicheck Mobilisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearfield and Intellicheck Mobilisa.
Diversification Opportunities for Clearfield and Intellicheck Mobilisa
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Clearfield and Intellicheck is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Clearfield and Intellicheck Mobilisa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellicheck Mobilisa and Clearfield 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 Clearfield 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 Clearfield i.e., Clearfield and Intellicheck Mobilisa go up and down completely randomly.
Pair Corralation between Clearfield and Intellicheck Mobilisa
Given the investment horizon of 90 days Clearfield is expected to generate 25.89 times less return on investment than Intellicheck Mobilisa. But when comparing it to its historical volatility, Clearfield is 1.56 times less risky than Intellicheck Mobilisa. It trades about 0.0 of its potential returns per unit of risk. Intellicheck Mobilisa is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 268.00 in Intellicheck Mobilisa on September 25, 2024 and sell it today you would earn a total of 10.00 from holding Intellicheck Mobilisa or generate 3.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Clearfield vs. Intellicheck Mobilisa
Performance |
Timeline |
Clearfield |
Intellicheck Mobilisa |
Clearfield and Intellicheck Mobilisa Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Clearfield and Intellicheck Mobilisa
The main advantage of trading using opposite Clearfield and Intellicheck Mobilisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearfield 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.Clearfield vs. Desktop Metal | Clearfield vs. Fabrinet | Clearfield vs. Kimball Electronics | Clearfield vs. Knowles Cor |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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