Correlation Between Super Micro and Intellicheck Mobilisa

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

By analyzing existing cross correlation between Super Micro Computer and Intellicheck Mobilisa, you can compare the effects of market volatilities on Super Micro and Intellicheck Mobilisa 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 Super Micro with a short position of Intellicheck Mobilisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Micro and Intellicheck Mobilisa.

Diversification Opportunities for Super Micro and Intellicheck Mobilisa

-0.42

Correlation Coefficient

Super Micro  Intellicheck Mobilisa

Very good diversification

The 3 months correlation between Super and Intellicheck is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Super Micro Computer and Intellicheck Mobilisa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellicheck Mobilisa and Super Micro 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 Super Micro Computer are associated (or correlated) with Intellicheck Mobilisa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intellicheck Mobilisa has no effect on the direction of Super Micro i.e., Super Micro and Intellicheck Mobilisa go up and down completely randomly.

Pair Corralation between Super Micro and Intellicheck Mobilisa

Given the investment horizon of 90 days Super Micro Computer is expected to under-perform the Intellicheck Mobilisa. In addition to that, Super Micro is 1.86 times more volatile than Intellicheck Mobilisa. It trades about -0.07 of its total potential returns per unit of risk. Intellicheck Mobilisa is currently generating about 0.06 per unit of volatility. If you would invest  268.00  in Intellicheck Mobilisa on September 25, 2024 and sell it today you would earn a total of  10.00  from holding Intellicheck Mobilisa or generate 3.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Super Micro Computer  vs.  Intellicheck Mobilisa

Super Micro Computer

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Super Micro Computer has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, Super Micro is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Intellicheck Mobilisa

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intellicheck Mobilisa are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent fundamental indicators, Intellicheck Mobilisa displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Super Micro and Intellicheck Mobilisa

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

The idea behind Super Micro Computer and Intellicheck Mobilisa 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.

Check out your portfolio center.

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.