Correlation Between AuthID and Ryvyl

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

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

Diversification Opportunities for AuthID and Ryvyl

-0.08

Correlation Coefficient

AuthID  Ryvyl

Good diversification

The 3 months correlation between AuthID and Ryvyl is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding authID Inc and Ryvyl Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ryvyl Inc and AuthID 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 authID Inc are associated (or correlated) with Ryvyl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ryvyl Inc has no effect on the direction of AuthID i.e., AuthID and Ryvyl go up and down completely randomly.

Pair Corralation between AuthID and Ryvyl

Given the investment horizon of 90 days authID Inc is expected to under-perform the Ryvyl. But the stock apears to be less risky and, when comparing its historical volatility, authID Inc is 1.93 times less risky than Ryvyl. The stock trades about -0.05 of its potential returns per unit of risk. The Ryvyl Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  130.00  in Ryvyl Inc on September 15, 2024 and sell it today you would earn a total of  10.00  from holding Ryvyl Inc or generate 7.69% return on investment over 90 days.

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

authID Inc  vs.  Ryvyl Inc

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 unsteady performance in the last few months, the Stock's forward 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.

Ryvyl Inc

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Ryvyl Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady basic indicators, Ryvyl disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AuthID and Ryvyl

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

The idea behind authID Inc and Ryvyl 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.