Correlation Between Advantage Solutions and CuriosityStream
Can any of the company-specific risk be diversified away by investing in both Advantage Solutions and CuriosityStream 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 Advantage Solutions and CuriosityStream into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advantage Solutions and CuriosityStream, you can compare the effects of market volatilities on Advantage Solutions and CuriosityStream 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 Advantage Solutions with a short position of CuriosityStream. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advantage Solutions and CuriosityStream.
Diversification Opportunities for Advantage Solutions and CuriosityStream
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Advantage and CuriosityStream is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Advantage Solutions and CuriosityStream in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CuriosityStream and Advantage Solutions 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 Advantage Solutions are associated (or correlated) with CuriosityStream. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CuriosityStream has no effect on the direction of Advantage Solutions i.e., Advantage Solutions and CuriosityStream go up and down completely randomly.
Pair Corralation between Advantage Solutions and CuriosityStream
Considering the 90-day investment horizon Advantage Solutions is expected to generate 423.76 times less return on investment than CuriosityStream. But when comparing it to its historical volatility, Advantage Solutions is 52.89 times less risky than CuriosityStream. It trades about 0.02 of its potential returns per unit of risk. CuriosityStream is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2.82 in CuriosityStream on August 29, 2024 and sell it today you would earn a total of 0.53 from holding CuriosityStream or generate 18.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Advantage Solutions vs. CuriosityStream
Performance |
| Timeline |
| Advantage Solutions |
| CuriosityStream |
Advantage Solutions and CuriosityStream Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advantage Solutions and CuriosityStream
The main advantage of trading using opposite Advantage Solutions and CuriosityStream positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advantage Solutions position performs unexpectedly, CuriosityStream 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 CuriosityStream will offset losses from the drop in CuriosityStream's long position.| Advantage Solutions vs. Criteo Sa | Advantage Solutions vs. Deluxe | Advantage Solutions vs. Emerald Expositions Events | Advantage Solutions vs. Marchex |
| CuriosityStream vs. Eos Energy Enterprises | CuriosityStream vs. CannBioRx Life Sciences | CuriosityStream vs. Advantage Solutions |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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