Correlation Between Doubledown Interactive and Cumulus Media
Can any of the company-specific risk be diversified away by investing in both Doubledown Interactive and Cumulus Media 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 Doubledown Interactive and Cumulus Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doubledown Interactive Co and Cumulus Media Class, you can compare the effects of market volatilities on Doubledown Interactive and Cumulus Media 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 Doubledown Interactive with a short position of Cumulus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubledown Interactive and Cumulus Media.
Diversification Opportunities for Doubledown Interactive and Cumulus Media
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Doubledown and Cumulus is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Doubledown Interactive Co and Cumulus Media Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cumulus Media Class and Doubledown Interactive 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 Doubledown Interactive Co are associated (or correlated) with Cumulus Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cumulus Media Class has no effect on the direction of Doubledown Interactive i.e., Doubledown Interactive and Cumulus Media go up and down completely randomly.
Pair Corralation between Doubledown Interactive and Cumulus Media
Considering the 90-day investment horizon Doubledown Interactive Co is expected to under-perform the Cumulus Media. But the stock apears to be less risky and, when comparing its historical volatility, Doubledown Interactive Co is 1.81 times less risky than Cumulus Media. The stock trades about -0.66 of its potential returns per unit of risk. The Cumulus Media Class is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 79.00 in Cumulus Media Class on September 12, 2024 and sell it today you would earn a total of 2.00 from holding Cumulus Media Class or generate 2.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doubledown Interactive Co vs. Cumulus Media Class
Performance |
| Timeline |
| Doubledown Interactive |
| Cumulus Media Class |
Doubledown Interactive and Cumulus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubledown Interactive and Cumulus Media
The main advantage of trading using opposite Doubledown Interactive and Cumulus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubledown Interactive position performs unexpectedly, Cumulus Media 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 Cumulus Media will offset losses from the drop in Cumulus Media's long position.| Doubledown Interactive vs. Playtika Holding Corp | Doubledown Interactive vs. SohuCom | Doubledown Interactive vs. Playstudios | Doubledown Interactive vs. GDEV Inc |
| Cumulus Media vs. E W Scripps | Cumulus Media vs. Gray Television | Cumulus Media vs. ProSiebenSat1 Media AG | Cumulus Media vs. RTL Group SA |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |