Correlation Between Wejo and AuthID
Can any of the company-specific risk be diversified away by investing in both Wejo and AuthID 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 Wejo and AuthID into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wejo Group and authID Inc, you can compare the effects of market volatilities on Wejo and AuthID 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 Wejo with a short position of AuthID. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wejo and AuthID.
Diversification Opportunities for Wejo and AuthID
Very weak diversification
The 3 months correlation between Wejo and AuthID is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Wejo Group and authID Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on authID Inc and Wejo 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 Wejo Group are associated (or correlated) with AuthID. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of authID Inc has no effect on the direction of Wejo i.e., Wejo and AuthID go up and down completely randomly.
Pair Corralation between Wejo and AuthID
If you would invest 2.80 in Wejo Group on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Wejo Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Wejo Group vs. authID Inc
Performance |
| Timeline |
| Wejo Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| authID Inc |
Wejo and AuthID Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wejo and AuthID
The main advantage of trading using opposite Wejo and AuthID positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wejo position performs unexpectedly, AuthID 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 AuthID will offset losses from the drop in AuthID's long position.The idea behind Wejo Group and authID Inc 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.| AuthID vs. Datasea | AuthID vs. Priority Technology Holdings | AuthID vs. Fuse Science | AuthID vs. Cerberus Cyber Sentinel |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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