Correlation Between Iveda Solutions and Progyny
Can any of the company-specific risk be diversified away by investing in both Iveda Solutions and Progyny 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 Iveda Solutions and Progyny into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iveda Solutions Warrant and Progyny, you can compare the effects of market volatilities on Iveda Solutions and Progyny 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 Iveda Solutions with a short position of Progyny. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iveda Solutions and Progyny.
Diversification Opportunities for Iveda Solutions and Progyny
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Iveda and Progyny is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Iveda Solutions Warrant and Progyny in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Progyny and Iveda Solutions 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 Iveda Solutions Warrant are associated (or correlated) with Progyny. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Progyny has no effect on the direction of Iveda Solutions i.e., Iveda Solutions and Progyny go up and down completely randomly.
Pair Corralation between Iveda Solutions and Progyny
Assuming the 90 days horizon Iveda Solutions Warrant is expected to generate 40.71 times more return on investment than Progyny. However, Iveda Solutions is 40.71 times more volatile than Progyny. It trades about 0.16 of its potential returns per unit of risk. Progyny is currently generating about -0.06 per unit of risk. If you would invest 15.00 in Iveda Solutions Warrant on September 12, 2024 and sell it today you would lose (9.00) from holding Iveda Solutions Warrant or give up 60.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 50.76% |
Values | Daily Returns |
Iveda Solutions Warrant vs. Progyny
Performance |
Timeline |
Iveda Solutions Warrant |
Progyny |
Iveda Solutions and Progyny Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Iveda Solutions and Progyny
The main advantage of trading using opposite Iveda Solutions and Progyny positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iveda Solutions position performs unexpectedly, Progyny 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 Progyny will offset losses from the drop in Progyny's long position.Iveda Solutions vs. Pasithea Therapeutics Corp | Iveda Solutions vs. Thayer Ventures Acquisition | Iveda Solutions vs. NexGel Warrant |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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