Correlation Between LogicMark and Blue Line

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

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

Diversification Opportunities for LogicMark and Blue Line

0.65

Correlation Coefficient

LogicMark  Blue Line

Poor diversification

The 3 months correlation between LogicMark and Blue is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding LogicMark and Blue Line Protection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Line Protection and LogicMark 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 LogicMark are associated (or correlated) with Blue Line. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Line Protection has no effect on the direction of LogicMark i.e., LogicMark and Blue Line go up and down completely randomly.

Pair Corralation between LogicMark and Blue Line

Given the investment horizon of 90 days LogicMark is expected to generate 8.33 times less return on investment than Blue Line. In addition to that, LogicMark is 1.0 times more volatile than Blue Line Protection. It trades about 0.0 of its total potential returns per unit of risk. Blue Line Protection is currently generating about 0.02 per unit of volatility. If you would invest  8.60  in Blue Line Protection on October 12, 2024 and sell it today you would lose (1.81) from holding Blue Line Protection or give up 21.05% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	96.83%
Values	Daily Returns

LogicMark  vs.  Blue Line Protection

LogicMark

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days LogicMark has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent primary indicators, LogicMark is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Blue Line Protection

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Blue Line Protection are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, Blue Line reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with LogicMark and Blue Line

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

The idea behind LogicMark and Blue Line Protection 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.

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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.