Correlation Between Intellicheck Mobilisa and Super Micro

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

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

Diversification Opportunities for Intellicheck Mobilisa and Super Micro

-0.39

Correlation Coefficient

Intellicheck Mobilisa  Super Micro

Very good diversification

The 3 months correlation between Intellicheck and Super is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Intellicheck Mobilisa and Super Micro Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Micro Computer 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 Super Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Micro Computer has no effect on the direction of Intellicheck Mobilisa i.e., Intellicheck Mobilisa and Super Micro go up and down completely randomly.

Pair Corralation between Intellicheck Mobilisa and Super Micro

Considering the 90-day investment horizon Intellicheck Mobilisa is expected to generate 0.47 times more return on investment than Super Micro. However, Intellicheck Mobilisa is 2.14 times less risky than Super Micro. It trades about 0.09 of its potential returns per unit of risk. Super Micro Computer is currently generating about -0.01 per unit of risk. If you would invest  221.00  in Intellicheck Mobilisa on October 3, 2024 and sell it today you would earn a total of  59.00  from holding Intellicheck Mobilisa or generate 26.7% return on investment over 90 days.

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

Intellicheck Mobilisa  vs.  Super Micro Computer

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.

Super Micro Computer

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Super Micro Computer has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, Super Micro is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Intellicheck Mobilisa and Super Micro

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

The idea behind Intellicheck Mobilisa and Super Micro Computer 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.