Correlation Between Santo Mining and AuthID

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

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

Diversification Opportunities for Santo Mining and AuthID

0.0

Correlation Coefficient

Santo Mining  AuthID

Pay attention - limited upside

The 3 months correlation between Santo and AuthID is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Santo Mining Corp and authID Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on authID Inc and Santo Mining 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 Santo Mining Corp 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 Santo Mining i.e., Santo Mining and AuthID go up and down completely randomly.

Pair Corralation between Santo Mining and AuthID

If you would invest  0.00  in Santo Mining Corp on September 1, 2024 and sell it today you would earn a total of  0.00  from holding Santo Mining Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	44.44%
Values	Daily Returns

Santo Mining Corp  vs.  authID Inc

Santo Mining Corp

Risk-Adjusted Performance

0 of 100

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.

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 uncertain performance in the last few months, the Stock's forward indicators remain rather sound which may send shares a bit higher in December 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Santo Mining and AuthID

The main advantage of trading using opposite Santo Mining and AuthID positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santo Mining 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 Santo Mining Corp 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.