Correlation Between Digimarc and QuickLogic
Can any of the company-specific risk be diversified away by investing in both Digimarc and QuickLogic 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 QuickLogic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digimarc and QuickLogic, you can compare the effects of market volatilities on Digimarc and QuickLogic 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 QuickLogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digimarc and QuickLogic.
Diversification Opportunities for Digimarc and QuickLogic
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Digimarc and QuickLogic is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Digimarc and QuickLogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QuickLogic 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 QuickLogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QuickLogic has no effect on the direction of Digimarc i.e., Digimarc and QuickLogic go up and down completely randomly.
Pair Corralation between Digimarc and QuickLogic
Given the investment horizon of 90 days Digimarc is expected to under-perform the QuickLogic. But the stock apears to be less risky and, when comparing its historical volatility, Digimarc is 1.1 times less risky than QuickLogic. The stock trades about -0.02 of its potential returns per unit of risk. The QuickLogic is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 916.00 in QuickLogic on April 8, 2025 and sell it today you would lose (302.00) from holding QuickLogic or give up 32.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digimarc vs. QuickLogic
Performance |
| Timeline |
| Digimarc |
| QuickLogic |
Digimarc and QuickLogic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digimarc and QuickLogic
The main advantage of trading using opposite Digimarc and QuickLogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digimarc position performs unexpectedly, QuickLogic 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 QuickLogic will offset losses from the drop in QuickLogic's long position.The idea behind Digimarc and QuickLogic 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.| QuickLogic vs. MGIC Investment Corp | QuickLogic vs. Brunswick | QuickLogic vs. The Joint Corp | QuickLogic vs. Marine Products |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |