Correlation Between Emerge Commerce and Intermap Technologies

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

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

Diversification Opportunities for Emerge Commerce and Intermap Technologies

0.44

Correlation Coefficient

Emerge Commerce  Intermap Technologies

Very weak diversification

The 3 months correlation between Emerge and Intermap is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Emerge Commerce and Intermap Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermap Technologies and Emerge Commerce 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 Emerge Commerce are associated (or correlated) with Intermap Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermap Technologies has no effect on the direction of Emerge Commerce i.e., Emerge Commerce and Intermap Technologies go up and down completely randomly.

Pair Corralation between Emerge Commerce and Intermap Technologies

Assuming the 90 days trading horizon Emerge Commerce is expected to generate 1.43 times more return on investment than Intermap Technologies. However, Emerge Commerce is 1.43 times more volatile than Intermap Technologies Corp. It trades about 0.04 of its potential returns per unit of risk. Intermap Technologies Corp is currently generating about -0.02 per unit of risk. If you would invest  5.00  in Emerge Commerce on December 30, 2024 and sell it today you would earn a total of  0.00  from holding Emerge Commerce or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Emerge Commerce  vs.  Intermap Technologies Corp

Emerge Commerce

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Emerge Commerce are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Emerge Commerce showed solid returns over the last few months and may actually be approaching a breakup point.

Intermap Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intermap Technologies Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Emerge Commerce and Intermap Technologies

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

The idea behind Emerge Commerce and Intermap Technologies Corp 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.

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.