Correlation Between Verb Technology and VerifyMe

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

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

Diversification Opportunities for Verb Technology and VerifyMe

0.0

Correlation Coefficient

Verb Technology  VerifyMe

Pay attention - limited upside

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

Pair Corralation between Verb Technology and VerifyMe

If you would invest  79.00  in VerifyMe on December 29, 2024 and sell it today you would lose (12.00) from holding VerifyMe or give up 15.19% of portfolio value over 90 days.

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

Verb Technology  vs.  VerifyMe

Verb Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Verb Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental drivers, Verb Technology is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

VerifyMe

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in VerifyMe are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile primary indicators, VerifyMe exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Verb Technology and VerifyMe

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

The idea behind Verb Technology and VerifyMe 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.