Correlation Between AuthID and Cielo SA

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

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

Diversification Opportunities for AuthID and Cielo SA

0.0

Correlation Coefficient

AuthID  Cielo SA

Pay attention - limited upside

The 3 months correlation between AuthID and Cielo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding authID Inc and Cielo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cielo SA and AuthID 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 authID Inc are associated (or correlated) with Cielo SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cielo SA has no effect on the direction of AuthID i.e., AuthID and Cielo SA go up and down completely randomly.

Pair Corralation between AuthID and Cielo SA

If you would invest  639.00  in authID Inc on December 28, 2024 and sell it today you would lose (11.50) from holding authID Inc or give up 1.8% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

authID Inc  vs.  Cielo SA

authID Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in authID Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain forward indicators, AuthID may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Cielo SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cielo SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Cielo SA is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with AuthID and Cielo SA

The main advantage of trading using opposite AuthID and Cielo SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AuthID position performs unexpectedly, Cielo SA 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 Cielo SA will offset losses from the drop in Cielo SA's long position.

The idea behind authID Inc and Cielo SA 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.