Correlation Between Auddia and VERB TECHNOLOGY

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

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

Diversification Opportunities for Auddia and VERB TECHNOLOGY

0.8

Correlation Coefficient

Auddia  VERB TECHNOLOGY

Very poor diversification

The 3 months correlation between Auddia and VERB is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Auddia Inc and VERB TECHNOLOGY PANY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VERB TECHNOLOGY PANY and Auddia 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 Auddia Inc are associated (or correlated) with VERB TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VERB TECHNOLOGY PANY has no effect on the direction of Auddia i.e., Auddia and VERB TECHNOLOGY go up and down completely randomly.

Pair Corralation between Auddia and VERB TECHNOLOGY

Given the investment horizon of 90 days Auddia Inc is expected to generate 1.4 times more return on investment than VERB TECHNOLOGY. However, Auddia is 1.4 times more volatile than VERB TECHNOLOGY PANY. It trades about -0.14 of its potential returns per unit of risk. VERB TECHNOLOGY PANY is currently generating about -0.22 per unit of risk. If you would invest  58.00  in Auddia Inc on November 28, 2024 and sell it today you would lose (28.00) from holding Auddia Inc or give up 48.28% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Auddia Inc  vs.  VERB TECHNOLOGY PANY

Auddia Inc

Risk-Adjusted Performance

Very Weak

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

VERB TECHNOLOGY PANY

Risk-Adjusted Performance

Very Weak

Over the last 90 days VERB TECHNOLOGY PANY has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Auddia and VERB TECHNOLOGY

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

The idea behind Auddia Inc and VERB TECHNOLOGY PANY 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 Transaction History module to view history of all your transactions and understand their impact on performance.