Correlation Between Iveda Solutions and Oceanpal

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

Diversification Opportunities for Iveda Solutions and Oceanpal

0.15
  Correlation Coefficient

Average diversification

The 3 months correlation between Iveda and Oceanpal is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Iveda Solutions and Oceanpal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oceanpal 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 are associated (or correlated) with Oceanpal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oceanpal has no effect on the direction of Iveda Solutions i.e., Iveda Solutions and Oceanpal go up and down completely randomly.

Pair Corralation between Iveda Solutions and Oceanpal

Given the investment horizon of 90 days Iveda Solutions is expected to under-perform the Oceanpal. In addition to that, Iveda Solutions is 1.12 times more volatile than Oceanpal. It trades about -0.06 of its total potential returns per unit of risk. Oceanpal is currently generating about 0.02 per unit of volatility. If you would invest  156.00  in Oceanpal on August 26, 2025 and sell it today you would lose (18.00) from holding Oceanpal or give up 11.54% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy96.88%
ValuesDaily Returns

Iveda Solutions  vs.  Oceanpal

 Performance 
       Timeline  
Iveda Solutions 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Iveda Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's fundamental indicators remain somewhat strong which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
Oceanpal 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Oceanpal are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile basic indicators, Oceanpal may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Iveda Solutions and Oceanpal Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Iveda Solutions and Oceanpal

The main advantage of trading using opposite Iveda Solutions and Oceanpal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iveda Solutions position performs unexpectedly, Oceanpal 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 Oceanpal will offset losses from the drop in Oceanpal's long position.
The idea behind Iveda Solutions and Oceanpal 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

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