Correlation Between Intellicheck Mobilisa and Quantum

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

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

Diversification Opportunities for Intellicheck Mobilisa and Quantum

0.54

Correlation Coefficient

Intellicheck Mobilisa  Quantum

Very weak diversification

The 3 months correlation between Intellicheck and Quantum is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Intellicheck Mobilisa and Quantum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quantum 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 Quantum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantum has no effect on the direction of Intellicheck Mobilisa i.e., Intellicheck Mobilisa and Quantum go up and down completely randomly.

Pair Corralation between Intellicheck Mobilisa and Quantum

Considering the 90-day investment horizon Intellicheck Mobilisa is expected to generate 5.44 times less return on investment than Quantum. But when comparing it to its historical volatility, Intellicheck Mobilisa is 2.49 times less risky than Quantum. It trades about 0.03 of its potential returns per unit of risk. Quantum is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  2,940  in Quantum on October 3, 2024 and sell it today you would earn a total of  2,452  from holding Quantum or generate 83.4% return on investment over 90 days.

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

Intellicheck Mobilisa  vs.  Quantum

Intellicheck Mobilisa

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Intellicheck Mobilisa are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental indicators, Intellicheck Mobilisa displayed solid returns over the last few months and may actually be approaching a breakup point.

Quantum

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Quantum are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent fundamental indicators, Quantum displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intellicheck Mobilisa and Quantum

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

The idea behind Intellicheck Mobilisa and Quantum 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.