Correlation Between Remark Holdings and Rekor Systems

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

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

Diversification Opportunities for Remark Holdings and Rekor Systems

0.0

Correlation Coefficient

Remark Holdings  Rekor Systems

Pay attention - limited upside

The 3 months correlation between Remark and Rekor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Remark Holdings and Rekor Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rekor Systems and Remark Holdings 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 Remark Holdings are associated (or correlated) with Rekor Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rekor Systems has no effect on the direction of Remark Holdings i.e., Remark Holdings and Rekor Systems go up and down completely randomly.

Pair Corralation between Remark Holdings and Rekor Systems

If you would invest  130.00  in Rekor Systems on December 27, 2024 and sell it today you would lose (29.87) from holding Rekor Systems or give up 22.98% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Remark Holdings  vs.  Rekor Systems

Remark Holdings

Risk-Adjusted Performance

Very Weak

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

Rekor Systems

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Rekor Systems are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal forward-looking signals, Rekor Systems reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Remark Holdings and Rekor Systems

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

The idea behind Remark Holdings and Rekor Systems 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.