Correlation Between Deluxe and Cardlytics
Can any of the company-specific risk be diversified away by investing in both Deluxe and Cardlytics 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 Deluxe and Cardlytics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deluxe and Cardlytics, you can compare the effects of market volatilities on Deluxe and Cardlytics 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 Deluxe with a short position of Cardlytics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deluxe and Cardlytics.
Diversification Opportunities for Deluxe and Cardlytics
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Deluxe and Cardlytics is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Deluxe and Cardlytics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardlytics and Deluxe 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 Deluxe are associated (or correlated) with Cardlytics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardlytics has no effect on the direction of Deluxe i.e., Deluxe and Cardlytics go up and down completely randomly.
Pair Corralation between Deluxe and Cardlytics
Considering the 90-day investment horizon Deluxe is expected to generate 0.31 times more return on investment than Cardlytics. However, Deluxe is 3.22 times less risky than Cardlytics. It trades about 0.1 of its potential returns per unit of risk. Cardlytics is currently generating about -0.14 per unit of risk. If you would invest 2,247 in Deluxe on November 3, 2024 and sell it today you would earn a total of 72.00 from holding Deluxe or generate 3.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Deluxe vs. Cardlytics
Performance |
| Timeline |
| Deluxe |
| Cardlytics |
Deluxe and Cardlytics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deluxe and Cardlytics
The main advantage of trading using opposite Deluxe and Cardlytics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deluxe position performs unexpectedly, Cardlytics 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 Cardlytics will offset losses from the drop in Cardlytics' long position.| Deluxe vs. Criteo Sa | Deluxe vs. Emerald Expositions Events | Deluxe vs. Marchex | Deluxe vs. Integral Ad Science |
| Cardlytics vs. Criteo Sa | Cardlytics vs. Deluxe | Cardlytics vs. Emerald Expositions Events | Cardlytics vs. Marchex |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |