Correlation Between AuthID and Repay Holdings
Can any of the company-specific risk be diversified away by investing in both AuthID and Repay Holdings 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 Repay Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between authID Inc and Repay Holdings Corp, you can compare the effects of market volatilities on AuthID and Repay Holdings 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 Repay Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of AuthID and Repay Holdings.
Diversification Opportunities for AuthID and Repay Holdings
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AuthID and Repay is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding authID Inc and Repay Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repay Holdings Corp 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 Repay Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repay Holdings Corp has no effect on the direction of AuthID i.e., AuthID and Repay Holdings go up and down completely randomly.
Pair Corralation between AuthID and Repay Holdings
Given the investment horizon of 90 days authID Inc is expected to generate 2.24 times more return on investment than Repay Holdings. However, AuthID is 2.24 times more volatile than Repay Holdings Corp. It trades about 0.05 of its potential returns per unit of risk. Repay Holdings Corp is currently generating about -0.01 per unit of risk. If you would invest 296.00 in authID Inc on January 11, 2025 and sell it today you would earn a total of 252.00 from holding authID Inc or generate 85.14% 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. Repay Holdings Corp
Performance |
| Timeline |
| authID Inc |
| Repay Holdings Corp |
AuthID and Repay Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AuthID and Repay Holdings
The main advantage of trading using opposite AuthID and Repay Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AuthID position performs unexpectedly, Repay Holdings 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 Repay Holdings will offset losses from the drop in Repay Holdings' long position.| AuthID vs. Datasea | AuthID vs. Priority Technology Holdings | AuthID vs. Fuse Science | AuthID vs. Cerberus Cyber Sentinel |
| Repay Holdings vs. Global Blue Group | Repay Holdings vs. Optiva Inc | Repay Holdings vs. Sangoma Technologies Corp | Repay Holdings vs. Evertec |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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