Correlation Between Acutus Medical and VerifyMe

Can any of the company-specific risk be diversified away by investing in both Acutus Medical 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 Acutus Medical and VerifyMe into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Acutus Medical and VerifyMe, you can compare the effects of market volatilities on Acutus Medical 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 Acutus Medical with a short position of VerifyMe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acutus Medical and VerifyMe.

Diversification Opportunities for Acutus Medical and VerifyMe

0.27

Correlation Coefficient

Acutus Medical  VerifyMe

Modest diversification

The 3 months correlation between Acutus and VerifyMe is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Acutus Medical and VerifyMe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VerifyMe and Acutus Medical 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 Acutus Medical 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 Acutus Medical i.e., Acutus Medical and VerifyMe go up and down completely randomly.

Pair Corralation between Acutus Medical and VerifyMe

If you would invest  63.00  in VerifyMe on September 25, 2024 and sell it today you would earn a total of  1.00  from holding VerifyMe or generate 1.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	5.0%
Values	Daily Returns

Acutus Medical  vs.  VerifyMe

Acutus Medical

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Acutus Medical has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward indicators, Acutus Medical is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

VerifyMe

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days VerifyMe has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's primary indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Acutus Medical and VerifyMe

The main advantage of trading using opposite Acutus Medical and VerifyMe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acutus Medical 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 Acutus Medical 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.

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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.