Correlation Between Blue Line and Iveda Solutions

Can any of the company-specific risk be diversified away by investing in both Blue Line and Iveda Solutions 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 Blue Line and Iveda Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Blue Line Protection and Iveda Solutions, you can compare the effects of market volatilities on Blue Line and Iveda Solutions 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 Blue Line with a short position of Iveda Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Line and Iveda Solutions.

Diversification Opportunities for Blue Line and Iveda Solutions

-0.32

Correlation Coefficient

Blue Line  Iveda Solutions

Very good diversification

The 3 months correlation between Blue and Iveda is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Blue Line Protection and Iveda Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iveda Solutions and Blue Line 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 Blue Line Protection are associated (or correlated) with Iveda Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iveda Solutions has no effect on the direction of Blue Line i.e., Blue Line and Iveda Solutions go up and down completely randomly.

Pair Corralation between Blue Line and Iveda Solutions

Given the investment horizon of 90 days Blue Line Protection is expected to generate 1.79 times more return on investment than Iveda Solutions. However, Blue Line is 1.79 times more volatile than Iveda Solutions. It trades about 0.08 of its potential returns per unit of risk. Iveda Solutions is currently generating about -0.03 per unit of risk. If you would invest  5.99  in Blue Line Protection on September 16, 2025 and sell it today you would earn a total of  0.81  from holding Blue Line Protection or generate 13.52% return on investment over 90 days.

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

Blue Line Protection  vs.  Iveda Solutions

Blue Line Protection

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Blue Line Protection are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Blue Line reported solid returns over the last few months and may actually be approaching a breakup point.

Iveda Solutions

Risk-Adjusted Performance

Weakest

Over the last 90 days Iveda Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain somewhat strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Blue Line and Iveda Solutions

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

The idea behind Blue Line Protection and Iveda Solutions 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.