Correlation Between Iveda Solutions and SSC Security
Can any of the company-specific risk be diversified away by investing in both Iveda Solutions and SSC Security 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 Iveda Solutions and SSC Security into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iveda Solutions and SSC Security Services, you can compare the effects of market volatilities on Iveda Solutions and SSC Security 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 Iveda Solutions with a short position of SSC Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iveda Solutions and SSC Security.
Diversification Opportunities for Iveda Solutions and SSC Security
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Iveda and SSC is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Iveda Solutions and SSC Security Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSC Security Services and Iveda Solutions 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 Iveda Solutions are associated (or correlated) with SSC Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSC Security Services has no effect on the direction of Iveda Solutions i.e., Iveda Solutions and SSC Security go up and down completely randomly.
Pair Corralation between Iveda Solutions and SSC Security
Given the investment horizon of 90 days Iveda Solutions is expected to generate 12.06 times more return on investment than SSC Security. However, Iveda Solutions is 12.06 times more volatile than SSC Security Services. It trades about 0.24 of its potential returns per unit of risk. SSC Security Services is currently generating about -0.01 per unit of risk. If you would invest 165.00 in Iveda Solutions on October 2, 2024 and sell it today you would earn a total of 577.00 from holding Iveda Solutions or generate 349.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.41% |
Values | Daily Returns |
Iveda Solutions vs. SSC Security Services
Performance |
Timeline |
Iveda Solutions |
SSC Security Services |
Iveda Solutions and SSC Security Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Iveda Solutions and SSC Security
The main advantage of trading using opposite Iveda Solutions and SSC Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iveda Solutions position performs unexpectedly, SSC Security 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 SSC Security will offset losses from the drop in SSC Security's long position.Iveda Solutions vs. Guardforce AI Co | Iveda Solutions vs. Bridger Aerospace Group | Iveda Solutions vs. Supercom | Iveda Solutions vs. Guardforce AI Co |
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Check out your portfolio center.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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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