Correlation Between VirnetX Holding and Mogo

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

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

Diversification Opportunities for VirnetX Holding and Mogo

-0.48

Correlation Coefficient

VirnetX Holding  Mogo

Very good diversification

The 3 months correlation between VirnetX and Mogo is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding VirnetX Holding Corp and Mogo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mogo Inc and VirnetX Holding 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 VirnetX Holding Corp are associated (or correlated) with Mogo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mogo Inc has no effect on the direction of VirnetX Holding i.e., VirnetX Holding and Mogo go up and down completely randomly.

Pair Corralation between VirnetX Holding and Mogo

Considering the 90-day investment horizon VirnetX Holding Corp is expected to generate 1.09 times more return on investment than Mogo. However, VirnetX Holding is 1.09 times more volatile than Mogo Inc. It trades about 0.0 of its potential returns per unit of risk. Mogo Inc is currently generating about 0.0 per unit of risk. If you would invest  820.00  in VirnetX Holding Corp on August 31, 2024 and sell it today you would lose (279.00) from holding VirnetX Holding Corp or give up 34.02% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

VirnetX Holding Corp  vs.  Mogo Inc

VirnetX Holding Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days VirnetX Holding Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical 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.

Mogo Inc

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Mogo Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal technical and fundamental indicators, Mogo displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with VirnetX Holding and Mogo

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

The idea behind VirnetX Holding Corp and Mogo 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.

Check out your portfolio center.

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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.