Correlation Between Thayer Ventures and Intellicheck Mobilisa

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

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

Diversification Opportunities for Thayer Ventures and Intellicheck Mobilisa

-0.64

Correlation Coefficient

Thayer Ventures  Intellicheck Mobilisa

Excellent diversification

The 3 months correlation between Thayer and Intellicheck is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Thayer Ventures Acquisition and Intellicheck Mobilisa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellicheck Mobilisa and Thayer Ventures 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 Thayer Ventures Acquisition are associated (or correlated) with Intellicheck Mobilisa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intellicheck Mobilisa has no effect on the direction of Thayer Ventures i.e., Thayer Ventures and Intellicheck Mobilisa go up and down completely randomly.

Pair Corralation between Thayer Ventures and Intellicheck Mobilisa

Assuming the 90 days horizon Thayer Ventures Acquisition is expected to generate 4.62 times more return on investment than Intellicheck Mobilisa. However, Thayer Ventures is 4.62 times more volatile than Intellicheck Mobilisa. It trades about 0.07 of its potential returns per unit of risk. Intellicheck Mobilisa is currently generating about 0.16 per unit of risk. If you would invest  1.60  in Thayer Ventures Acquisition on October 6, 2024 and sell it today you would lose (0.20) from holding Thayer Ventures Acquisition or give up 12.5% of portfolio value over 90 days.

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

Thayer Ventures Acquisition  vs.  Intellicheck Mobilisa

Thayer Ventures Acqu

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Thayer Ventures Acquisition are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Thayer Ventures showed solid returns over the last few months and may actually be approaching a breakup point.

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 fragile fundamental indicators, Intellicheck Mobilisa displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Thayer Ventures and Intellicheck Mobilisa

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

The idea behind Thayer Ventures Acquisition and Intellicheck Mobilisa 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.