Pair Correlation Between Mentor Graphics and Digimarc

This module allows you to analyze existing cross correlation between Mentor Graphics Corporation and Digimarc Corporation. You can compare the effects of market volatilities on Mentor Graphics and Digimarc 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 Mentor Graphics with a short position of Digimarc. See also your portfolio center. Please also check ongoing floating volatility patterns of Mentor Graphics and Digimarc.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Mentor Graphics Corp.  vs   Digimarc Corp.
 Performance (%) 
      Timeline 

Pair Volatility

If you would invest  3,230  in Digimarc Corporation on September 24, 2017 and sell it today you would earn a total of  355  from holding Digimarc Corporation or generate 10.99% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Mentor Graphics and Digimarc
0.64

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy4.76%
ValuesDaily Returns

Diversification

Poor diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Digimarc

  
14 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Digimarc Corporation are ranked lower than 14 (%) of all global equities and portfolios over the last 30 days.