Correlation Between Supercom and LogicMark

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

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

Diversification Opportunities for Supercom and LogicMark

-0.87

Correlation Coefficient

Supercom  LogicMark

Pay attention - limited upside

The 3 months correlation between Supercom and LogicMark is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Supercom and LogicMark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LogicMark 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 LogicMark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LogicMark has no effect on the direction of Supercom i.e., Supercom and LogicMark go up and down completely randomly.

Pair Corralation between Supercom and LogicMark

Given the investment horizon of 90 days Supercom is expected to generate 0.32 times more return on investment than LogicMark. However, Supercom is 3.16 times less risky than LogicMark. It trades about 0.16 of its potential returns per unit of risk. LogicMark is currently generating about -0.17 per unit of risk. If you would invest  619.00  in Supercom on April 26, 2025 and sell it today you would earn a total of  317.00  from holding Supercom or generate 51.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	44.26%
Values	Daily Returns

Supercom  vs.  LogicMark

Supercom

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Supercom are ranked lower than 12 (%) 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.

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 August 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Supercom and LogicMark

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

The idea behind Supercom and LogicMark 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..