Correlation Between Cardlytics and Steel Connect
Can any of the company-specific risk be diversified away by investing in both Cardlytics and Steel Connect 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 Steel Connect into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardlytics and Steel Connect, you can compare the effects of market volatilities on Cardlytics and Steel Connect 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 Steel Connect. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardlytics and Steel Connect.
Diversification Opportunities for Cardlytics and Steel Connect
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cardlytics and Steel is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Cardlytics and Steel Connect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steel Connect 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 Steel Connect. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steel Connect has no effect on the direction of Cardlytics i.e., Cardlytics and Steel Connect go up and down completely randomly.
Pair Corralation between Cardlytics and Steel Connect
Given the investment horizon of 90 days Cardlytics is expected to generate 1.14 times less return on investment than Steel Connect. In addition to that, Cardlytics is 3.4 times more volatile than Steel Connect. It trades about 0.01 of its total potential returns per unit of risk. Steel Connect is currently generating about 0.04 per unit of volatility. If you would invest 895.00 in Steel Connect on August 27, 2024 and sell it today you would earn a total of 108.00 from holding Steel Connect or generate 12.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cardlytics vs. Steel Connect
Performance |
| Timeline |
| Cardlytics |
| Steel Connect |
Cardlytics and Steel Connect Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardlytics and Steel Connect
The main advantage of trading using opposite Cardlytics and Steel Connect positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardlytics position performs unexpectedly, Steel Connect 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 Steel Connect will offset losses from the drop in Steel Connect's long position.| Cardlytics vs. Criteo Sa | Cardlytics vs. Deluxe | Cardlytics vs. Emerald Expositions Events | Cardlytics vs. Marchex |
| Steel Connect vs. Baosheng Media Group | Steel Connect vs. Impact Fusion International | Steel Connect vs. Mirriad Advertising plc | Steel Connect vs. CyberAgent ADR |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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