Correlation Between Looking Glass and I3 Verticals

Can any of the company-specific risk be diversified away by investing in both Looking Glass and I3 Verticals 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 Looking Glass and I3 Verticals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Looking Glass Labs and i3 Verticals, you can compare the effects of market volatilities on Looking Glass and I3 Verticals 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 Looking Glass with a short position of I3 Verticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Looking Glass and I3 Verticals.

Diversification Opportunities for Looking Glass and I3 Verticals

-0.27

Correlation Coefficient

Looking Glass  I3 Verticals

Very good diversification

The 3 months correlation between Looking and IIIV is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Looking Glass Labs and i3 Verticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on i3 Verticals and Looking Glass 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 Looking Glass Labs are associated (or correlated) with I3 Verticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of i3 Verticals has no effect on the direction of Looking Glass i.e., Looking Glass and I3 Verticals go up and down completely randomly.

Pair Corralation between Looking Glass and I3 Verticals

If you would invest  2,299  in i3 Verticals on October 20, 2024 and sell it today you would earn a total of  72.00  from holding i3 Verticals or generate 3.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Looking Glass Labs  vs.  i3 Verticals

Looking Glass Labs

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Looking Glass Labs has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, Looking Glass is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

i3 Verticals

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in i3 Verticals are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable forward indicators, I3 Verticals is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Looking Glass and I3 Verticals

The main advantage of trading using opposite Looking Glass and I3 Verticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Looking Glass position performs unexpectedly, I3 Verticals 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 I3 Verticals will offset losses from the drop in I3 Verticals' long position.

The idea behind Looking Glass Labs and i3 Verticals 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 CEOs Directory module to screen CEOs from public companies around the world.