Correlation Between Pagaya Technologies and AuthID

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

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

Diversification Opportunities for Pagaya Technologies and AuthID

0.13

Correlation Coefficient

Pagaya Technologies  AuthID

Average diversification

The 3 months correlation between Pagaya and AuthID is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Pagaya Technologies and authID Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on authID Inc and Pagaya Technologies 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 Pagaya Technologies 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 Pagaya Technologies i.e., Pagaya Technologies and AuthID go up and down completely randomly.

Pair Corralation between Pagaya Technologies and AuthID

Considering the 90-day investment horizon Pagaya Technologies is expected to generate 1.03 times more return on investment than AuthID. However, Pagaya Technologies is 1.03 times more volatile than authID Inc. It trades about 0.08 of its potential returns per unit of risk. authID Inc is currently generating about 0.04 per unit of risk. If you would invest  965.00  in Pagaya Technologies on December 27, 2024 and sell it today you would earn a total of  193.00  from holding Pagaya Technologies or generate 20.0% return on investment over 90 days.

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

Pagaya Technologies  vs.  authID Inc

Pagaya Technologies

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Pagaya Technologies are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, Pagaya Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

authID Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in authID Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain forward indicators, AuthID exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Pagaya Technologies and AuthID

The main advantage of trading using opposite Pagaya Technologies and AuthID positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pagaya Technologies 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 Pagaya Technologies 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..