Correlation Between Veritone and ATIF Holdings
Can any of the company-specific risk be diversified away by investing in both Veritone and ATIF 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 Veritone and ATIF Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Veritone and ATIF Holdings, you can compare the effects of market volatilities on Veritone and ATIF 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 Veritone with a short position of ATIF Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Veritone and ATIF Holdings.
Diversification Opportunities for Veritone and ATIF Holdings
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Veritone and ATIF is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Veritone and ATIF Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATIF Holdings and Veritone 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 Veritone are associated (or correlated) with ATIF Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATIF Holdings has no effect on the direction of Veritone i.e., Veritone and ATIF Holdings go up and down completely randomly.
Pair Corralation between Veritone and ATIF Holdings
Given the investment horizon of 90 days Veritone is expected to generate 0.97 times more return on investment than ATIF Holdings. However, Veritone is 1.03 times less risky than ATIF Holdings. It trades about 0.05 of its potential returns per unit of risk. ATIF Holdings is currently generating about 0.02 per unit of risk. If you would invest 212.00 in Veritone on September 4, 2024 and sell it today you would earn a total of 45.00 from holding Veritone or generate 21.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Veritone vs. ATIF Holdings
Performance |
| Timeline |
| Veritone |
| ATIF Holdings |
Veritone and ATIF Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Veritone and ATIF Holdings
The main advantage of trading using opposite Veritone and ATIF Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Veritone position performs unexpectedly, ATIF 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 ATIF Holdings will offset losses from the drop in ATIF Holdings' long position.| Veritone vs. Bridgeline Digital | Veritone vs. Aurora Mobile | Veritone vs. Ryvyl Inc | Veritone vs. Global Blue Group |
| ATIF Holdings vs. Katapult Holdings | ATIF Holdings vs. Arqit Quantum | ATIF Holdings vs. Marqeta | ATIF Holdings vs. Veritone |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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