Correlation Between AuthID and Cielo SA
Can any of the company-specific risk be diversified away by investing in both AuthID and Cielo SA 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 AuthID and Cielo SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between authID Inc and Cielo SA, you can compare the effects of market volatilities on AuthID and Cielo SA 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 AuthID with a short position of Cielo SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of AuthID and Cielo SA.
Diversification Opportunities for AuthID and Cielo SA
Very weak diversification
The 3 months correlation between AuthID and Cielo is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding authID Inc and Cielo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cielo SA and AuthID 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 authID Inc are associated (or correlated) with Cielo SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cielo SA has no effect on the direction of AuthID i.e., AuthID and Cielo SA go up and down completely randomly.
Pair Corralation between AuthID and Cielo SA
Given the investment horizon of 90 days authID Inc is expected to generate 1.4 times more return on investment than Cielo SA. However, AuthID is 1.4 times more volatile than Cielo SA. It trades about 0.03 of its potential returns per unit of risk. Cielo SA is currently generating about 0.02 per unit of risk. If you would invest 605.00 in authID Inc on August 31, 2024 and sell it today you would lose (6.00) from holding authID Inc or give up 0.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 85.56% |
| Values | Daily Returns |
authID Inc vs. Cielo SA
Performance |
| Timeline |
| authID Inc |
| Cielo SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Strong
AuthID and Cielo SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AuthID and Cielo SA
The main advantage of trading using opposite AuthID and Cielo SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AuthID position performs unexpectedly, Cielo SA 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 Cielo SA will offset losses from the drop in Cielo SA's long position.| AuthID vs. Datasea | AuthID vs. Priority Technology Holdings | AuthID vs. Fuse Science | AuthID vs. Cerberus Cyber Sentinel |
| Cielo SA vs. CCC Intelligent Solutions | Cielo SA vs. Endava | Cielo SA vs. authID Inc | Cielo SA vs. EverCommerce |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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