Correlation Between AuthID and Santo Mining
Can any of the company-specific risk be diversified away by investing in both AuthID and Santo Mining 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 Santo Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between authID Inc and Santo Mining Corp, you can compare the effects of market volatilities on AuthID and Santo Mining 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 Santo Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of AuthID and Santo Mining.
Diversification Opportunities for AuthID and Santo Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AuthID and Santo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding authID Inc and Santo Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Santo Mining 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 Santo Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Santo Mining Corp has no effect on the direction of AuthID i.e., AuthID and Santo Mining go up and down completely randomly.
Pair Corralation between AuthID and Santo Mining
Given the investment horizon of 90 days AuthID is expected to generate 40.31 times less return on investment than Santo Mining. But when comparing it to its historical volatility, authID Inc is 18.96 times less risky than Santo Mining. It trades about 0.06 of its potential returns per unit of risk. Santo Mining Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 0.02 in Santo Mining Corp on November 5, 2024 and sell it today you would lose (0.02) from holding Santo Mining Corp or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 84.24% |
| Values | Daily Returns |
authID Inc vs. Santo Mining Corp
Performance |
| Timeline |
| authID Inc |
| Santo Mining Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AuthID and Santo Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AuthID and Santo Mining
The main advantage of trading using opposite AuthID and Santo Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AuthID position performs unexpectedly, Santo Mining 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 Santo Mining will offset losses from the drop in Santo Mining's long position.| AuthID vs. Datasea | AuthID vs. Priority Technology Holdings | AuthID vs. Fuse Science | AuthID vs. Cerberus Cyber Sentinel |
| Santo Mining vs. Plyzer Technologies | Santo Mining vs. Datasea | Santo Mining vs. Global Cannabis Applications | Santo Mining vs. Splitit Payments |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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