Correlation Between Cardlytics and Advantage Solutions
Can any of the company-specific risk be diversified away by investing in both Cardlytics and Advantage Solutions 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 Cardlytics and Advantage Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardlytics and Advantage Solutions, you can compare the effects of market volatilities on Cardlytics and Advantage Solutions 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 Cardlytics with a short position of Advantage Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardlytics and Advantage Solutions.
Diversification Opportunities for Cardlytics and Advantage Solutions
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cardlytics and Advantage is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Cardlytics and Advantage Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advantage Solutions and Cardlytics 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 Cardlytics are associated (or correlated) with Advantage Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advantage Solutions has no effect on the direction of Cardlytics i.e., Cardlytics and Advantage Solutions go up and down completely randomly.
Pair Corralation between Cardlytics and Advantage Solutions
Given the investment horizon of 90 days Cardlytics is expected to generate 2.66 times less return on investment than Advantage Solutions. In addition to that, Cardlytics is 1.77 times more volatile than Advantage Solutions. It trades about 0.03 of its total potential returns per unit of risk. Advantage Solutions is currently generating about 0.16 per unit of volatility. If you would invest 317.00 in Advantage Solutions on August 28, 2024 and sell it today you would earn a total of 43.00 from holding Advantage Solutions or generate 13.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cardlytics vs. Advantage Solutions
Performance |
| Timeline |
| Cardlytics |
| Advantage Solutions |
Cardlytics and Advantage Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardlytics and Advantage Solutions
The main advantage of trading using opposite Cardlytics and Advantage Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardlytics position performs unexpectedly, Advantage Solutions 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 Advantage Solutions will offset losses from the drop in Advantage Solutions' long position.| Cardlytics vs. Criteo Sa | Cardlytics vs. Deluxe | Cardlytics vs. Emerald Expositions Events | Cardlytics vs. Marchex |
| Advantage Solutions vs. ADTRAN Inc | Advantage Solutions vs. Belden Inc | Advantage Solutions vs. ADC Therapeutics SA | Advantage Solutions vs. Comtech Telecommunications Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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