Correlation Between Remark Holdings and AuthID

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

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

Diversification Opportunities for Remark Holdings and AuthID

0.5

Correlation Coefficient

Remark Holdings  AuthID

Very weak diversification

The 3 months correlation between Remark and AuthID is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Remark Holdings and authID Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on authID Inc and Remark Holdings 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 Remark Holdings 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 Remark Holdings i.e., Remark Holdings and AuthID go up and down completely randomly.

Pair Corralation between Remark Holdings and AuthID

Given the investment horizon of 90 days Remark Holdings is expected to generate 2.47 times less return on investment than AuthID. In addition to that, Remark Holdings is 1.08 times more volatile than authID Inc. It trades about 0.01 of its total potential returns per unit of risk. authID Inc is currently generating about 0.03 per unit of volatility. If you would invest  624.00  in authID Inc on September 12, 2024 and sell it today you would earn a total of  20.00  from holding authID Inc or generate 3.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	29.49%
Values	Daily Returns

Remark Holdings  vs.  authID Inc

Remark Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Remark Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Remark Holdings is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

authID Inc

Risk-Adjusted Performance

0 of 100

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 latest uncertain performance, the Stock's forward indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Remark Holdings and AuthID

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

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.