Correlation Between Glimpse and Veritone

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Can any of the company-specific risk be diversified away by investing in both Glimpse and Veritone 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 Glimpse and Veritone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glimpse Group and Veritone, you can compare the effects of market volatilities on Glimpse and Veritone 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 Glimpse with a short position of Veritone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glimpse and Veritone.

Diversification Opportunities for Glimpse and Veritone

-0.34
  Correlation Coefficient

Very good diversification

The 3 months correlation between Glimpse and Veritone is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Glimpse Group and Veritone in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veritone and Glimpse 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 Glimpse Group are associated (or correlated) with Veritone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veritone has no effect on the direction of Glimpse i.e., Glimpse and Veritone go up and down completely randomly.

Pair Corralation between Glimpse and Veritone

Given the investment horizon of 90 days Glimpse Group is expected to under-perform the Veritone. But the stock apears to be less risky and, when comparing its historical volatility, Glimpse Group is 1.53 times less risky than Veritone. The stock trades about -0.07 of its potential returns per unit of risk. The Veritone is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  298.00  in Veritone on August 24, 2024 and sell it today you would lose (24.50) from holding Veritone or give up 8.22% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Glimpse Group  vs.  Veritone

 Performance 
       Timeline  
Glimpse Group 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Glimpse Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with abnormal performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in December 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
Veritone 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Veritone has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Veritone is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Glimpse and Veritone Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Glimpse and Veritone

The main advantage of trading using opposite Glimpse and Veritone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glimpse position performs unexpectedly, Veritone 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 Veritone will offset losses from the drop in Veritone's long position.
The idea behind Glimpse Group and Veritone pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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