Correlation Between Insignia Systems and Marchex

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

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

Diversification Opportunities for Insignia Systems and Marchex

0.0

Correlation Coefficient

Insignia Systems  Marchex

Pay attention - limited upside

The 3 months correlation between Insignia and Marchex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Insignia Systems and Marchex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marchex and Insignia Systems 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 Insignia Systems are associated (or correlated) with Marchex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marchex has no effect on the direction of Insignia Systems i.e., Insignia Systems and Marchex go up and down completely randomly.

Pair Corralation between Insignia Systems and Marchex

If you would invest  774.00  in Insignia Systems on October 7, 2024 and sell it today you would earn a total of  0.00  from holding Insignia Systems or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Insignia Systems  vs.  Marchex

Insignia Systems

Risk-Adjusted Performance

0 of 100

Very Weak

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

Marchex

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Marchex are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady technical indicators, Marchex may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Insignia Systems and Marchex

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

The idea behind Insignia Systems and Marchex 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.