Correlation Between D Box and Intermap Technologies

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

By analyzing existing cross correlation between D Box Technologies and Intermap Technologies Corp, you can compare the effects of market volatilities on D Box and Intermap Technologies 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 D Box with a short position of Intermap Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of D Box and Intermap Technologies.

Diversification Opportunities for D Box and Intermap Technologies

0.63

Correlation Coefficient

D Box  Intermap Technologies

Poor diversification

The 3 months correlation between DBO and Intermap is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding D Box Technologies and Intermap Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermap Technologies and D Box 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 D Box Technologies are associated (or correlated) with Intermap Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermap Technologies has no effect on the direction of D Box i.e., D Box and Intermap Technologies go up and down completely randomly.

Pair Corralation between D Box and Intermap Technologies

Assuming the 90 days trading horizon D Box is expected to generate 2.67 times less return on investment than Intermap Technologies. In addition to that, D Box is 1.29 times more volatile than Intermap Technologies Corp. It trades about 0.07 of its total potential returns per unit of risk. Intermap Technologies Corp is currently generating about 0.24 per unit of volatility. If you would invest  85.00  in Intermap Technologies Corp on September 2, 2024 and sell it today you would earn a total of  85.00  from holding Intermap Technologies Corp or generate 100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

D Box Technologies  vs.  Intermap Technologies Corp

D Box Technologies

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in D Box Technologies are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, D Box displayed solid returns over the last few months and may actually be approaching a breakup point.

Intermap Technologies

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Intermap Technologies Corp are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Intermap Technologies displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with D Box and Intermap Technologies

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

The idea behind D Box Technologies and Intermap Technologies Corp 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.