Correlation Between IClick Interactive and Cheer Holding
Can any of the company-specific risk be diversified away by investing in both IClick Interactive and Cheer Holding 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 IClick Interactive and Cheer Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iClick Interactive Asia and Cheer Holding, you can compare the effects of market volatilities on IClick Interactive and Cheer Holding 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 IClick Interactive with a short position of Cheer Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of IClick Interactive and Cheer Holding.
Diversification Opportunities for IClick Interactive and Cheer Holding
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IClick and Cheer is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding iClick Interactive Asia and Cheer Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cheer Holding and IClick Interactive 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 iClick Interactive Asia are associated (or correlated) with Cheer Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cheer Holding has no effect on the direction of IClick Interactive i.e., IClick Interactive and Cheer Holding go up and down completely randomly.
Pair Corralation between IClick Interactive and Cheer Holding
Given the investment horizon of 90 days iClick Interactive Asia is expected to generate 2.68 times more return on investment than Cheer Holding. However, IClick Interactive is 2.68 times more volatile than Cheer Holding. It trades about 0.28 of its potential returns per unit of risk. Cheer Holding is currently generating about -0.39 per unit of risk. If you would invest 311.00 in iClick Interactive Asia on August 24, 2024 and sell it today you would earn a total of 99.00 from holding iClick Interactive Asia or generate 31.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iClick Interactive Asia vs. Cheer Holding
Performance |
| Timeline |
| iClick Interactive Asia |
| Cheer Holding |
IClick Interactive and Cheer Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IClick Interactive and Cheer Holding
The main advantage of trading using opposite IClick Interactive and Cheer Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IClick Interactive position performs unexpectedly, Cheer Holding 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 Cheer Holding will offset losses from the drop in Cheer Holding's long position.| IClick Interactive vs. Mirriad Advertising plc | IClick Interactive vs. INEO Tech Corp | IClick Interactive vs. Kidoz Inc | IClick Interactive vs. Marchex |
| Cheer Holding vs. First Ship Lease | Cheer Holding vs. Tarsus Pharmaceuticals | Cheer Holding vs. Inhibrx | Cheer Holding vs. Abcellera Biologics |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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