Correlation Between VerifyMe and Quantum Computing

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

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

Diversification Opportunities for VerifyMe and Quantum Computing

-0.76

Correlation Coefficient

VerifyMe  Quantum Computing

Pay attention - limited upside

The 3 months correlation between VerifyMe and Quantum is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding VerifyMe and Quantum Computing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quantum Computing and VerifyMe 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 VerifyMe are associated (or correlated) with Quantum Computing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantum Computing has no effect on the direction of VerifyMe i.e., VerifyMe and Quantum Computing go up and down completely randomly.

Pair Corralation between VerifyMe and Quantum Computing

Given the investment horizon of 90 days VerifyMe is expected to generate 26.97 times less return on investment than Quantum Computing. But when comparing it to its historical volatility, VerifyMe is 1.83 times less risky than Quantum Computing. It trades about 0.01 of its potential returns per unit of risk. Quantum Computing is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  174.00  in Quantum Computing on September 28, 2024 and sell it today you would earn a total of  1,750  from holding Quantum Computing or generate 1005.75% return on investment over 90 days.

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

VerifyMe  vs.  Quantum Computing

VerifyMe

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days VerifyMe 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 primary indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Quantum Computing

Risk-Adjusted Performance

26 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Quantum Computing are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental drivers, Quantum Computing unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with VerifyMe and Quantum Computing

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

The idea behind VerifyMe and Quantum Computing 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.