Correlation Between Supercom and ICTS International

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

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

Diversification Opportunities for Supercom and ICTS International

0.0

Correlation Coefficient

Supercom  ICTS International

Pay attention - limited upside

The 3 months correlation between Supercom and ICTS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Supercom and ICTS International NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICTS International and Supercom 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 Supercom are associated (or correlated) with ICTS International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICTS International has no effect on the direction of Supercom i.e., Supercom and ICTS International go up and down completely randomly.

Pair Corralation between Supercom and ICTS International

Given the investment horizon of 90 days Supercom is expected to generate 1.87 times more return on investment than ICTS International. However, Supercom is 1.87 times more volatile than ICTS International NV. It trades about 0.06 of its potential returns per unit of risk. ICTS International NV is currently generating about 0.02 per unit of risk. If you would invest  545.00  in Supercom on May 12, 2025 and sell it today you would earn a total of  610.00  from holding Supercom or generate 111.93% return on investment over 90 days.

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

Supercom  vs.  ICTS International NV

Supercom

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Supercom are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent fundamental indicators, Supercom sustained solid returns over the last few months and may actually be approaching a breakup point.

ICTS International

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in ICTS International NV are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, ICTS International may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Supercom and ICTS International

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

The idea behind Supercom and ICTS International NV 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.