Correlation Between Fluent and Digital Media
Can any of the company-specific risk be diversified away by investing in both Fluent 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 Fluent and Digital Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fluent Inc and Digital Media Solutions, you can compare the effects of market volatilities on Fluent 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 Fluent with a short position of Digital Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluent and Digital Media.
Diversification Opportunities for Fluent and Digital Media
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fluent and Digital is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fluent Inc 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 Fluent 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 Fluent Inc 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 Fluent i.e., Fluent and Digital Media go up and down completely randomly.
Pair Corralation between Fluent and Digital Media
If you would invest (100.00) in Digital Media Solutions on December 11, 2024 and sell it today you would earn a total of 100.00 from holding Digital Media Solutions or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Fluent Inc vs. Digital Media Solutions
Performance |
| Timeline |
| Fluent Inc |
| Digital Media Solutions |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Fluent and Digital Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fluent and Digital Media
The main advantage of trading using opposite Fluent and Digital Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluent 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.| Fluent vs. Marchex | ||
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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