Correlation Between LogicMark and Zedcor

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

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

Diversification Opportunities for LogicMark and Zedcor

-0.58

Correlation Coefficient

LogicMark  Zedcor

Excellent diversification

The 3 months correlation between LogicMark and Zedcor is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding LogicMark and Zedcor Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zedcor Inc 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 Zedcor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zedcor Inc has no effect on the direction of LogicMark i.e., LogicMark and Zedcor go up and down completely randomly.

Pair Corralation between LogicMark and Zedcor

Given the investment horizon of 90 days LogicMark is expected to under-perform the Zedcor. In addition to that, LogicMark is 1.95 times more volatile than Zedcor Inc. It trades about -0.09 of its total potential returns per unit of risk. Zedcor Inc is currently generating about 0.2 per unit of volatility. If you would invest  39.00  in Zedcor Inc on October 7, 2024 and sell it today you would earn a total of  203.00  from holding Zedcor Inc or generate 520.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.13%
Values	Daily Returns

LogicMark  vs.  Zedcor Inc

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 abnormal performance in the last few months, the Stock's primary indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Zedcor Inc

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Zedcor Inc are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Zedcor reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with LogicMark and Zedcor

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

The idea behind LogicMark and Zedcor Inc 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.