Correlation Between MicroAlgo and AuthID

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

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

Diversification Opportunities for MicroAlgo and AuthID

0.85

Correlation Coefficient

MicroAlgo  AuthID

Very poor diversification

The 3 months correlation between MicroAlgo and AuthID is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding MicroAlgo and authID Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on authID Inc and MicroAlgo 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 MicroAlgo 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 MicroAlgo i.e., MicroAlgo and AuthID go up and down completely randomly.

Pair Corralation between MicroAlgo and AuthID

Given the investment horizon of 90 days MicroAlgo is expected to under-perform the AuthID. In addition to that, MicroAlgo is 2.18 times more volatile than authID Inc. It trades about -0.29 of its total potential returns per unit of risk. authID Inc is currently generating about -0.13 per unit of volatility. If you would invest  740.00  in authID Inc on April 25, 2025 and sell it today you would lose (321.00) from holding authID Inc or give up 43.38% of portfolio value over 90 days.

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

MicroAlgo  vs.  authID Inc

MicroAlgo

Risk-Adjusted Performance

Very Weak

Over the last 90 days MicroAlgo 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 and fundamental indicators remain very healthy which may send shares a bit higher in August 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

authID Inc

Risk-Adjusted Performance

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 weak performance in the last few months, the Stock's forward indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with MicroAlgo and AuthID

The main advantage of trading using opposite MicroAlgo and AuthID positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MicroAlgo 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 MicroAlgo 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.