Correlation Between Digimarc and Electronics For

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Can any of the company-specific risk be diversified away by investing in both Digimarc and Electronics For 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 Digimarc and Electronics For into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digimarc and Electronics For Imaging, you can compare the effects of market volatilities on Digimarc and Electronics For 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 Digimarc with a short position of Electronics For. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digimarc and Electronics For.

Diversification Opportunities for Digimarc and Electronics For

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  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Digimarc and Electronics For

If you would invest (100.00) in Electronics For Imaging on December 29, 2023 and sell it today you would earn a total of  100.00  from holding Electronics For Imaging or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Digimarc  vs.  Electronics For Imaging

 Performance 
       Timeline  
Digimarc 

Risk-Adjusted Performance

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Over the last 90 days Digimarc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.
Electronics For Imaging 

Risk-Adjusted Performance

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High
Very Weak
Over the last 90 days Electronics For Imaging has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Electronics For is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Digimarc and Electronics For Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Digimarc and Electronics For

The main advantage of trading using opposite Digimarc and Electronics For positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digimarc position performs unexpectedly, Electronics For 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 Electronics For will offset losses from the drop in Electronics For's long position.
The idea behind Digimarc and Electronics For Imaging 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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