Correlation Between Edgewater Technology and Digimarc
Can any of the company-specific risk be diversified away by investing in both Edgewater Technology and Digimarc 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 Edgewater Technology and Digimarc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Edgewater Technology and Digimarc, you can compare the effects of market volatilities on Edgewater Technology 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 Edgewater Technology with a short position of Digimarc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edgewater Technology and Digimarc.
Diversification Opportunities for Edgewater Technology and Digimarc
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Edgewater and Digimarc is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Edgewater Technology and Digimarc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digimarc and Edgewater Technology 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 Edgewater Technology 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 Edgewater Technology i.e., Edgewater Technology and Digimarc go up and down completely randomly.
Pair Corralation between Edgewater Technology and Digimarc
If you would invest 2,038 in Digimarc on December 29, 2023 and sell it today you would earn a total of 664.00 from holding Digimarc or generate 32.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Edgewater Technology vs. Digimarc
Performance |
Timeline |
Edgewater Technology |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Digimarc |
Edgewater Technology and Digimarc Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Edgewater Technology and Digimarc
The main advantage of trading using opposite Edgewater Technology and Digimarc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edgewater Technology position performs unexpectedly, Digimarc 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 Digimarc will offset losses from the drop in Digimarc's long position.Edgewater Technology vs. Modine Manufacturing | Edgewater Technology vs. Tesla Inc | Edgewater Technology vs. FormFactor | Edgewater Technology vs. Visteon Corp |
Digimarc vs. Genpact Limited | Digimarc vs. Fiserv Inc | Digimarc vs. Gartner | Digimarc vs. Kyndryl Holdings |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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