Correlation Between Zedcor and LogicMark

Can any of the company-specific risk be diversified away by investing in both Zedcor and LogicMark 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 Zedcor and LogicMark into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Zedcor Inc and LogicMark, you can compare the effects of market volatilities on Zedcor and LogicMark 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 Zedcor with a short position of LogicMark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zedcor and LogicMark.

Diversification Opportunities for Zedcor and LogicMark

-0.53

Correlation Coefficient

Zedcor  LogicMark

Excellent diversification

The 3 months correlation between Zedcor and LogicMark is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Zedcor Inc and LogicMark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LogicMark and Zedcor 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 Zedcor Inc are associated (or correlated) with LogicMark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LogicMark has no effect on the direction of Zedcor i.e., Zedcor and LogicMark go up and down completely randomly.

Pair Corralation between Zedcor and LogicMark

Assuming the 90 days horizon Zedcor Inc is expected to generate 0.26 times more return on investment than LogicMark. However, Zedcor Inc is 3.86 times less risky than LogicMark. It trades about 0.15 of its potential returns per unit of risk. LogicMark is currently generating about -0.07 per unit of risk. If you would invest  185.00  in Zedcor Inc on October 26, 2024 and sell it today you would earn a total of  48.00  from holding Zedcor Inc or generate 25.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	93.65%
Values	Daily Returns

Zedcor Inc  vs.  LogicMark

Zedcor Inc

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Zedcor Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, Zedcor reported solid returns over the last few months and may actually be approaching a breakup point.

LogicMark

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days LogicMark has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's primary indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Zedcor and LogicMark

The main advantage of trading using opposite Zedcor and LogicMark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zedcor position performs unexpectedly, LogicMark 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 LogicMark will offset losses from the drop in LogicMark's long position.

The idea behind Zedcor Inc and LogicMark 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.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.