Correlation Between AuthID and GigaCloud Technology
Can any of the company-specific risk be diversified away by investing in both AuthID and GigaCloud Technology 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 GigaCloud Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between authID Inc and GigaCloud Technology Class, you can compare the effects of market volatilities on AuthID and GigaCloud Technology 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 GigaCloud Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of AuthID and GigaCloud Technology.
Diversification Opportunities for AuthID and GigaCloud Technology
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AuthID and GigaCloud is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding authID Inc and GigaCloud Technology Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaCloud Technology 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 GigaCloud Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GigaCloud Technology has no effect on the direction of AuthID i.e., AuthID and GigaCloud Technology go up and down completely randomly.
Pair Corralation between AuthID and GigaCloud Technology
Given the investment horizon of 90 days authID Inc is expected to generate 1.33 times more return on investment than GigaCloud Technology. However, AuthID is 1.33 times more volatile than GigaCloud Technology Class. It trades about 0.22 of its potential returns per unit of risk. GigaCloud Technology Class is currently generating about 0.16 per unit of risk. If you would invest 566.00 in authID Inc on November 3, 2024 and sell it today you would earn a total of 134.89 from holding authID Inc or generate 23.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
authID Inc vs. GigaCloud Technology Class
Performance |
| Timeline |
| authID Inc |
| GigaCloud Technology |
AuthID and GigaCloud Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AuthID and GigaCloud Technology
The main advantage of trading using opposite AuthID and GigaCloud Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AuthID position performs unexpectedly, GigaCloud Technology 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 GigaCloud Technology will offset losses from the drop in GigaCloud Technology's long position.| AuthID vs. Datasea | AuthID vs. Priority Technology Holdings | AuthID vs. Fuse Science | AuthID vs. Cerberus Cyber Sentinel |
| GigaCloud Technology vs. Arqit Quantum | GigaCloud Technology vs. Telos Corp | GigaCloud Technology vs. Cemtrex | GigaCloud Technology vs. Alarum Technologies |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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