Correlation Between LogicMark and NL Industries

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

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

Diversification Opportunities for LogicMark and NL Industries

0.89

Correlation Coefficient

LogicMark  NL Industries

Very poor diversification

The 3 months correlation between LogicMark and NL Industries is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding LogicMark and NL Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NL Industries and LogicMark 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 LogicMark are associated (or correlated) with NL Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NL Industries has no effect on the direction of LogicMark i.e., LogicMark and NL Industries go up and down completely randomly.

Pair Corralation between LogicMark and NL Industries

Given the investment horizon of 90 days LogicMark is expected to under-perform the NL Industries. In addition to that, LogicMark is 5.08 times more volatile than NL Industries. It trades about -0.3 of its total potential returns per unit of risk. NL Industries is currently generating about -0.19 per unit of volatility. If you would invest  861.00  in NL Industries on May 6, 2025 and sell it today you would lose (280.00) from holding NL Industries or give up 32.52% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	33.87%
Values	Daily Returns

LogicMark  vs.  NL Industries

LogicMark

Risk-Adjusted Performance

Very Weak

Over the last 90 days LogicMark has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's primary indicators remain quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

NL Industries

Risk-Adjusted Performance

Very Weak

Over the last 90 days NL Industries has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's essential indicators remain quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with LogicMark and NL Industries

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

The idea behind LogicMark and NL Industries 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.