Correlation Between Cardlytics and Interpublic Group
Can any of the company-specific risk be diversified away by investing in both Cardlytics and Interpublic Group 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 Interpublic Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardlytics and Interpublic Group of, you can compare the effects of market volatilities on Cardlytics and Interpublic Group 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 Interpublic Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardlytics and Interpublic Group.
Diversification Opportunities for Cardlytics and Interpublic Group
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cardlytics and Interpublic is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Cardlytics and Interpublic Group of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interpublic Group 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 Interpublic Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interpublic Group has no effect on the direction of Cardlytics i.e., Cardlytics and Interpublic Group go up and down completely randomly.
Pair Corralation between Cardlytics and Interpublic Group
Given the investment horizon of 90 days Cardlytics is expected to generate 3.39 times more return on investment than Interpublic Group. However, Cardlytics is 3.39 times more volatile than Interpublic Group of. It trades about 0.03 of its potential returns per unit of risk. Interpublic Group of is currently generating about 0.04 per unit of risk. If you would invest 404.00 in Cardlytics on August 28, 2024 and sell it today you would lose (2.00) from holding Cardlytics or give up 0.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cardlytics vs. Interpublic Group of
Performance |
| Timeline |
| Cardlytics |
| Interpublic Group |
Cardlytics and Interpublic Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardlytics and Interpublic Group
The main advantage of trading using opposite Cardlytics and Interpublic Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardlytics position performs unexpectedly, Interpublic Group 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 Interpublic Group will offset losses from the drop in Interpublic Group's long position.| Cardlytics vs. Criteo Sa | Cardlytics vs. Deluxe | Cardlytics vs. Emerald Expositions Events | Cardlytics vs. Marchex |
| Interpublic Group vs. Ziff Davis | Interpublic Group vs. Criteo Sa | Interpublic Group vs. WPP PLC ADR | Interpublic Group vs. Integral Ad Science |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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