Correlation Between Emerald Expositions and AcuityAds Holdings
Can any of the company-specific risk be diversified away by investing in both Emerald Expositions and AcuityAds Holdings 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 AcuityAds Holdings 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 AcuityAds Holdings, you can compare the effects of market volatilities on Emerald Expositions and AcuityAds Holdings 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 AcuityAds Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerald Expositions and AcuityAds Holdings.
Diversification Opportunities for Emerald Expositions and AcuityAds Holdings
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Emerald and AcuityAds is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Emerald Expositions Events and AcuityAds Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AcuityAds Holdings 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 AcuityAds Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AcuityAds Holdings has no effect on the direction of Emerald Expositions i.e., Emerald Expositions and AcuityAds Holdings go up and down completely randomly.
Pair Corralation between Emerald Expositions and AcuityAds Holdings
Considering the 90-day investment horizon Emerald Expositions Events is expected to generate 1.03 times more return on investment than AcuityAds Holdings. However, Emerald Expositions is 1.03 times more volatile than AcuityAds Holdings. It trades about 0.03 of its potential returns per unit of risk. AcuityAds Holdings is currently generating about 0.01 per unit of risk. If you would invest 398.00 in Emerald Expositions Events on August 27, 2024 and sell it today you would earn a total of 108.00 from holding Emerald Expositions Events or generate 27.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 31.85% |
| Values | Daily Returns |
Emerald Expositions Events vs. AcuityAds Holdings
Performance |
| Timeline |
| Emerald Expositions |
| AcuityAds Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Emerald Expositions and AcuityAds Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerald Expositions and AcuityAds Holdings
The main advantage of trading using opposite Emerald Expositions and AcuityAds Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerald Expositions position performs unexpectedly, AcuityAds Holdings 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 AcuityAds Holdings will offset losses from the drop in AcuityAds Holdings' long position.| Emerald Expositions vs. Mirriad Advertising plc | Emerald Expositions vs. INEO Tech Corp | Emerald Expositions vs. Marchex | Emerald Expositions vs. Innovid Corp |
| AcuityAds Holdings vs. Juniata Valley Financial | AcuityAds Holdings vs. EvoAir Holdings | AcuityAds Holdings vs. Univest Pennsylvania | AcuityAds Holdings vs. Alaska Air Group |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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