Correlation Between Genius Sports and TechTarget
Can any of the company-specific risk be diversified away by investing in both Genius Sports and TechTarget 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 Genius Sports and TechTarget into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genius Sports and TechTarget, you can compare the effects of market volatilities on Genius Sports and TechTarget 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 Genius Sports with a short position of TechTarget. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genius Sports and TechTarget.
Diversification Opportunities for Genius Sports and TechTarget
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Genius and TechTarget is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Genius Sports and TechTarget in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TechTarget and Genius Sports 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 Genius Sports are associated (or correlated) with TechTarget. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TechTarget has no effect on the direction of Genius Sports i.e., Genius Sports and TechTarget go up and down completely randomly.
Pair Corralation between Genius Sports and TechTarget
Given the investment horizon of 90 days Genius Sports is expected to generate 1.4 times more return on investment than TechTarget. However, Genius Sports is 1.4 times more volatile than TechTarget. It trades about 0.3 of its potential returns per unit of risk. TechTarget is currently generating about 0.14 per unit of risk. If you would invest 710.00 in Genius Sports on August 27, 2024 and sell it today you would earn a total of 224.00 from holding Genius Sports or generate 31.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genius Sports vs. TechTarget
Performance |
| Timeline |
| Genius Sports |
| TechTarget |
Genius Sports and TechTarget Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genius Sports and TechTarget
The main advantage of trading using opposite Genius Sports and TechTarget positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genius Sports position performs unexpectedly, TechTarget 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 TechTarget will offset losses from the drop in TechTarget's long position.| Genius Sports vs. MediaAlpha | Genius Sports vs. Comscore | Genius Sports vs. Cheetah Mobile | Genius Sports vs. Onfolio Holdings |
| TechTarget vs. Sabio Holdings | TechTarget vs. Comscore | TechTarget vs. Outbrain | TechTarget vs. Rightmove Plc |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |