Correlation Between AdTheorent Holding and CompoSecure
Can any of the company-specific risk be diversified away by investing in both AdTheorent Holding and CompoSecure 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 AdTheorent Holding and CompoSecure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AdTheorent Holding and CompoSecure, you can compare the effects of market volatilities on AdTheorent Holding and CompoSecure 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 AdTheorent Holding with a short position of CompoSecure. Check out your portfolio center. Please also check ongoing floating volatility patterns of AdTheorent Holding and CompoSecure.
Diversification Opportunities for AdTheorent Holding and CompoSecure
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between AdTheorent and CompoSecure is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding AdTheorent Holding and CompoSecure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompoSecure and AdTheorent 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 AdTheorent Holding are associated (or correlated) with CompoSecure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CompoSecure has no effect on the direction of AdTheorent Holding i.e., AdTheorent Holding and CompoSecure go up and down completely randomly.
Pair Corralation between AdTheorent Holding and CompoSecure
If you would invest 471.00 in CompoSecure on August 28, 2024 and sell it today you would earn a total of 54.00 from holding CompoSecure or generate 11.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
AdTheorent Holding vs. CompoSecure
Performance |
| Timeline |
| AdTheorent Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CompoSecure |
AdTheorent Holding and CompoSecure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AdTheorent Holding and CompoSecure
The main advantage of trading using opposite AdTheorent Holding and CompoSecure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AdTheorent Holding position performs unexpectedly, CompoSecure 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 CompoSecure will offset losses from the drop in CompoSecure's long position.| AdTheorent Holding vs. Vita Coco | AdTheorent Holding vs. Japan Tobacco ADR | AdTheorent Holding vs. Emerson Electric | AdTheorent Holding vs. RBC Bearings Incorporated |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |