Correlation Between 01 Communique and Logiq

Can any of the company-specific risk be diversified away by investing in both 01 Communique and Logiq 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 01 Communique and Logiq into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 01 Communique Laboratory and Logiq Inc, you can compare the effects of market volatilities on 01 Communique and Logiq 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 01 Communique with a short position of Logiq. Check out your portfolio center. Please also check ongoing floating volatility patterns of 01 Communique and Logiq.

Diversification Opportunities for 01 Communique and Logiq

-0.37

Correlation Coefficient

01 Communique  Logiq

Very good diversification

The 3 months correlation between OONEF and Logiq is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding 01 Communique Laboratory and Logiq Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logiq Inc and 01 Communique 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 01 Communique Laboratory are associated (or correlated) with Logiq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logiq Inc has no effect on the direction of 01 Communique i.e., 01 Communique and Logiq go up and down completely randomly.

Pair Corralation between 01 Communique and Logiq

Assuming the 90 days horizon 01 Communique Laboratory is expected to under-perform the Logiq. But the otc stock apears to be less risky and, when comparing its historical volatility, 01 Communique Laboratory is 1.91 times less risky than Logiq. The otc stock trades about -0.08 of its potential returns per unit of risk. The Logiq Inc is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  0.80  in Logiq Inc on December 28, 2024 and sell it today you would earn a total of  0.39  from holding Logiq Inc or generate 48.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

01 Communique Laboratory  vs.  Logiq Inc

01 Communique Laboratory

Risk-Adjusted Performance

Very Weak

Over the last 90 days 01 Communique Laboratory has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Logiq Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Logiq Inc are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile forward indicators, Logiq reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with 01 Communique and Logiq

The main advantage of trading using opposite 01 Communique and Logiq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 01 Communique position performs unexpectedly, Logiq 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 Logiq will offset losses from the drop in Logiq's long position.

The idea behind 01 Communique Laboratory and Logiq 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.