Correlation Between LogicMark and Quanex Building

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

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

Diversification Opportunities for LogicMark and Quanex Building

-0.53

Correlation Coefficient

LogicMark  Quanex Building

Excellent diversification

The 3 months correlation between LogicMark and Quanex is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding LogicMark and Quanex Building Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quanex Building Products 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 Quanex Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quanex Building Products has no effect on the direction of LogicMark i.e., LogicMark and Quanex Building go up and down completely randomly.

Pair Corralation between LogicMark and Quanex Building

Given the investment horizon of 90 days LogicMark is expected to under-perform the Quanex Building. In addition to that, LogicMark is 2.78 times more volatile than Quanex Building Products. It trades about -0.11 of its total potential returns per unit of risk. Quanex Building Products is currently generating about -0.26 per unit of volatility. If you would invest  2,182  in Quanex Building Products on August 26, 2025 and sell it today you would lose (983.00) from holding Quanex Building Products or give up 45.05% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	76.56%
Values	Daily Returns

LogicMark  vs.  Quanex Building Products

LogicMark

Risk-Adjusted Performance

Weakest

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

Quanex Building Products

Risk-Adjusted Performance

Weakest

Over the last 90 days Quanex Building Products has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with LogicMark and Quanex Building

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

The idea behind LogicMark and Quanex Building Products 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.