Correlation Between Mitek Systems and QuickLogic

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

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

Diversification Opportunities for Mitek Systems and QuickLogic

0.51

Correlation Coefficient

Mitek Systems  QuickLogic

Very weak diversification

The 3 months correlation between Mitek and QuickLogic is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Mitek Systems and QuickLogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QuickLogic and Mitek Systems 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 Mitek Systems are associated (or correlated) with QuickLogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QuickLogic has no effect on the direction of Mitek Systems i.e., Mitek Systems and QuickLogic go up and down completely randomly.

Pair Corralation between Mitek Systems and QuickLogic

Given the investment horizon of 90 days Mitek Systems is expected to generate 1.65 times less return on investment than QuickLogic. But when comparing it to its historical volatility, Mitek Systems is 1.99 times less risky than QuickLogic. It trades about 0.16 of its potential returns per unit of risk. QuickLogic is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  453.00  in QuickLogic on April 21, 2025 and sell it today you would earn a total of  161.00  from holding QuickLogic or generate 35.54% return on investment over 90 days.

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

Mitek Systems  vs.  QuickLogic

Mitek Systems

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mitek Systems are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile basic indicators, Mitek Systems disclosed solid returns over the last few months and may actually be approaching a breakup point.

QuickLogic

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in QuickLogic are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain forward indicators, QuickLogic disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mitek Systems and QuickLogic

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

The idea behind Mitek Systems and QuickLogic 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.