Correlation Between Clear Channel and AcuityAds Holdings
Can any of the company-specific risk be diversified away by investing in both Clear Channel and AcuityAds Holdings 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 Clear Channel and AcuityAds Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clear Channel Outdoor and AcuityAds Holdings, you can compare the effects of market volatilities on Clear Channel and AcuityAds Holdings 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 Clear Channel with a short position of AcuityAds Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clear Channel and AcuityAds Holdings.
Diversification Opportunities for Clear Channel and AcuityAds Holdings
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Clear and AcuityAds is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Clear Channel Outdoor and AcuityAds Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AcuityAds Holdings and Clear Channel 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 Clear Channel Outdoor are associated (or correlated) with AcuityAds Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AcuityAds Holdings has no effect on the direction of Clear Channel i.e., Clear Channel and AcuityAds Holdings go up and down completely randomly.
Pair Corralation between Clear Channel and AcuityAds Holdings
If you would invest 160.00 in Clear Channel Outdoor on August 28, 2024 and sell it today you would lose (1.00) from holding Clear Channel Outdoor or give up 0.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 2.38% |
| Values | Daily Returns |
Clear Channel Outdoor vs. AcuityAds Holdings
Performance |
| Timeline |
| Clear Channel Outdoor |
| AcuityAds Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Clear Channel and AcuityAds Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clear Channel and AcuityAds Holdings
The main advantage of trading using opposite Clear Channel and AcuityAds Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clear Channel position performs unexpectedly, AcuityAds Holdings 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 AcuityAds Holdings will offset losses from the drop in AcuityAds Holdings' long position.| Clear Channel vs. Mirriad Advertising plc | Clear Channel vs. INEO Tech Corp | Clear Channel vs. Innovid Corp | Clear Channel vs. Townsquare Media |
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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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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