Correlation Between Iveda Solutions and Progyny

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

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

Diversification Opportunities for Iveda Solutions and Progyny

0.39

Correlation Coefficient

Iveda Solutions  Progyny

Weak diversification

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

Pair Corralation between Iveda Solutions and Progyny

Assuming the 90 days horizon Iveda Solutions Warrant is expected to generate 8.89 times more return on investment than Progyny. However, Iveda Solutions is 8.89 times more volatile than Progyny. It trades about 0.19 of its potential returns per unit of risk. Progyny is currently generating about -0.11 per unit of risk. If you would invest  6.00  in Iveda Solutions Warrant on September 13, 2024 and sell it today you would earn a total of  0.00  from holding Iveda Solutions Warrant or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	46.88%
Values	Daily Returns

Iveda Solutions Warrant  vs.  Progyny

Iveda Solutions Warrant

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Iveda Solutions Warrant are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Iveda Solutions showed solid returns over the last few months and may actually be approaching a breakup point.

Progyny

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Progyny has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Iveda Solutions and Progyny

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

The idea behind Iveda Solutions Warrant and Progyny 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.