Correlation Between Digimarc and CLPS

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

By analyzing existing cross correlation between Digimarc and CLPS Inc, you can compare the effects of market volatilities on Digimarc and CLPS 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 CLPS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digimarc and CLPS.

Diversification Opportunities for Digimarc and CLPS

-0.44

Correlation Coefficient

Digimarc  CLPS

Very good diversification

The 3 months correlation between Digimarc and CLPS is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Digimarc and CLPS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLPS Inc 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 CLPS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLPS Inc has no effect on the direction of Digimarc i.e., Digimarc and CLPS go up and down completely randomly.

Pair Corralation between Digimarc and CLPS

Given the investment horizon of 90 days Digimarc is expected to generate 1.08 times more return on investment than CLPS. However, Digimarc is 1.08 times more volatile than CLPS Inc. It trades about 0.02 of its potential returns per unit of risk. CLPS Inc is currently generating about 0.01 per unit of risk. If you would invest  1,236  in Digimarc on April 23, 2025 and sell it today you would earn a total of  10.50  from holding Digimarc or generate 0.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Digimarc  vs.  CLPS Inc

Digimarc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Digimarc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Digimarc is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

CLPS Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days CLPS Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, CLPS is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Digimarc and CLPS

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

The idea behind Digimarc and CLPS Inc 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.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.