Correlation Between LogicMark and NVIDIA

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

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

Diversification Opportunities for LogicMark and NVIDIA

0.69

Correlation Coefficient

LogicMark  NVIDIA

Poor diversification

The 3 months correlation between LogicMark and NVIDIA is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding LogicMark and NVIDIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NVIDIA 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 NVIDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NVIDIA has no effect on the direction of LogicMark i.e., LogicMark and NVIDIA go up and down completely randomly.

Pair Corralation between LogicMark and NVIDIA

Given the investment horizon of 90 days LogicMark is expected to under-perform the NVIDIA. In addition to that, LogicMark is 2.89 times more volatile than NVIDIA. It trades about -0.47 of its total potential returns per unit of risk. NVIDIA is currently generating about -0.07 per unit of volatility. If you would invest  13,748  in NVIDIA on December 30, 2024 and sell it today you would lose (2,781) from holding NVIDIA or give up 20.23% of portfolio value over 90 days.

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

LogicMark  vs.  NVIDIA

LogicMark

Risk-Adjusted Performance

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 April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

NVIDIA

Risk-Adjusted Performance

Very Weak

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

Pair Trading with LogicMark and NVIDIA

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

The idea behind LogicMark and NVIDIA 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.