Correlation Between Emerald Expositions and Digital Media
Can any of the company-specific risk be diversified away by investing in both Emerald Expositions and Digital 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 Emerald Expositions and Digital Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerald Expositions Events and Digital Media Solutions, you can compare the effects of market volatilities on Emerald Expositions and Digital 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 Emerald Expositions with a short position of Digital Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerald Expositions and Digital Media.
Diversification Opportunities for Emerald Expositions and Digital Media
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Emerald and Digital is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Emerald Expositions Events and Digital Media Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Media Solutions and Emerald Expositions 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 Emerald Expositions Events are associated (or correlated) with Digital Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Media Solutions has no effect on the direction of Emerald Expositions i.e., Emerald Expositions and Digital Media go up and down completely randomly.
Pair Corralation between Emerald Expositions and Digital Media
If you would invest 423.00 in Emerald Expositions Events on September 3, 2024 and sell it today you would earn a total of 74.00 from holding Emerald Expositions Events or generate 17.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Emerald Expositions Events vs. Digital Media Solutions
Performance |
| Timeline |
| Emerald Expositions |
| Digital Media Solutions |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Emerald Expositions and Digital Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerald Expositions and Digital Media
The main advantage of trading using opposite Emerald Expositions and Digital Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerald Expositions position performs unexpectedly, Digital 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 Digital Media will offset losses from the drop in Digital Media's long position.| Emerald Expositions vs. Mirriad Advertising plc | Emerald Expositions vs. INEO Tech Corp | Emerald Expositions vs. Marchex | Emerald Expositions vs. Innovid Corp |
| Digital Media vs. Advantage Solutions | Digital Media vs. Townsquare Media | Digital Media vs. Entravision Communications | Digital Media vs. Emerald Expositions Events |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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