Correlation Between Intellicheck Mobilisa and Boardwalktech Software

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

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

Diversification Opportunities for Intellicheck Mobilisa and Boardwalktech Software

-0.32

Correlation Coefficient

Intellicheck Mobilisa  Boardwalktech Software

Very good diversification

The 3 months correlation between Intellicheck and Boardwalktech is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Intellicheck Mobilisa and Boardwalktech Software Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boardwalktech Software and Intellicheck Mobilisa 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 Intellicheck Mobilisa are associated (or correlated) with Boardwalktech Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boardwalktech Software has no effect on the direction of Intellicheck Mobilisa i.e., Intellicheck Mobilisa and Boardwalktech Software go up and down completely randomly.

Pair Corralation between Intellicheck Mobilisa and Boardwalktech Software

Considering the 90-day investment horizon Intellicheck Mobilisa is expected to generate 0.59 times more return on investment than Boardwalktech Software. However, Intellicheck Mobilisa is 1.69 times less risky than Boardwalktech Software. It trades about 0.09 of its potential returns per unit of risk. Boardwalktech Software Corp is currently generating about -0.23 per unit of risk. If you would invest  259.00  in Intellicheck Mobilisa on September 22, 2024 and sell it today you would earn a total of  18.00  from holding Intellicheck Mobilisa or generate 6.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Intellicheck Mobilisa  vs.  Boardwalktech Software Corp

Intellicheck Mobilisa

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intellicheck Mobilisa are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile fundamental indicators, Intellicheck Mobilisa displayed solid returns over the last few months and may actually be approaching a breakup point.

Boardwalktech Software

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Boardwalktech Software Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, Boardwalktech Software is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Intellicheck Mobilisa and Boardwalktech Software

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

The idea behind Intellicheck Mobilisa and Boardwalktech Software 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.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.