Correlation Between VerifyMe and VerifyMe
Can any of the company-specific risk be diversified away by investing in both VerifyMe and VerifyMe 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 VerifyMe and VerifyMe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VerifyMe and VerifyMe, you can compare the effects of market volatilities on VerifyMe and VerifyMe 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 VerifyMe with a short position of VerifyMe. Check out your portfolio center. Please also check ongoing floating volatility patterns of VerifyMe and VerifyMe.
Diversification Opportunities for VerifyMe and VerifyMe
Average diversification
The 3 months correlation between VerifyMe and VerifyMe is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding VerifyMe and VerifyMe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VerifyMe and VerifyMe 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 VerifyMe are associated (or correlated) with VerifyMe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VerifyMe has no effect on the direction of VerifyMe i.e., VerifyMe and VerifyMe go up and down completely randomly.
Pair Corralation between VerifyMe and VerifyMe
Assuming the 90 days horizon VerifyMe is expected to generate 5.18 times more return on investment than VerifyMe. However, VerifyMe is 5.18 times more volatile than VerifyMe. It trades about -0.03 of its potential returns per unit of risk. VerifyMe is currently generating about -0.53 per unit of risk. If you would invest 3.93 in VerifyMe on August 25, 2024 and sell it today you would lose (0.89) from holding VerifyMe or give up 22.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 21.74% |
| Values | Daily Returns |
VerifyMe vs. VerifyMe
Performance |
| Timeline |
| VerifyMe |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Strong
| VerifyMe |
VerifyMe and VerifyMe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VerifyMe and VerifyMe
The main advantage of trading using opposite VerifyMe and VerifyMe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VerifyMe position performs unexpectedly, VerifyMe 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 VerifyMe will offset losses from the drop in VerifyMe's long position.The idea behind VerifyMe and VerifyMe 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.| VerifyMe vs. Plexus Corp | VerifyMe vs. Benchmark Electronics | VerifyMe vs. Jabil Circuit | VerifyMe vs. Sanmina |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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