Correlation Between AuthID and Santo Mining

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

By analyzing existing cross correlation between authID Inc and Santo Mining Corp, you can compare the effects of market volatilities on AuthID and Santo Mining 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 Santo Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of AuthID and Santo Mining.

Diversification Opportunities for AuthID and Santo Mining

0.0

Correlation Coefficient

AuthID  Santo Mining

Pay attention - limited upside

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

Pair Corralation between AuthID and Santo Mining

If you would invest (100.00) in Santo Mining Corp on November 27, 2024 and sell it today you would earn a total of  100.00  from holding Santo Mining Corp or generate -100.0% return on investment over 90 days.

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

authID Inc  vs.  Santo Mining Corp

authID Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days authID Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward indicators, AuthID is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Santo Mining Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Santo Mining Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Santo Mining is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with AuthID and Santo Mining

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

The idea behind authID Inc and Santo Mining Corp 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.