Correlation Between AcuityAds Holdings and Advantage Solutions
Can any of the company-specific risk be diversified away by investing in both AcuityAds Holdings and Advantage Solutions 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 AcuityAds Holdings and Advantage Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AcuityAds Holdings and Advantage Solutions, you can compare the effects of market volatilities on AcuityAds Holdings and Advantage Solutions 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 AcuityAds Holdings with a short position of Advantage Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of AcuityAds Holdings and Advantage Solutions.
Diversification Opportunities for AcuityAds Holdings and Advantage Solutions
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AcuityAds and Advantage is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding AcuityAds Holdings and Advantage Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advantage Solutions and AcuityAds Holdings 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 AcuityAds Holdings are associated (or correlated) with Advantage Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advantage Solutions has no effect on the direction of AcuityAds Holdings i.e., AcuityAds Holdings and Advantage Solutions go up and down completely randomly.
Pair Corralation between AcuityAds Holdings and Advantage Solutions
If you would invest 270.00 in Advantage Solutions on August 24, 2024 and sell it today you would earn a total of 86.50 from holding Advantage Solutions or generate 32.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
AcuityAds Holdings vs. Advantage Solutions
Performance |
| Timeline |
| AcuityAds Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Advantage Solutions |
AcuityAds Holdings and Advantage Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AcuityAds Holdings and Advantage Solutions
The main advantage of trading using opposite AcuityAds Holdings and Advantage Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AcuityAds Holdings position performs unexpectedly, Advantage Solutions 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 Advantage Solutions will offset losses from the drop in Advantage Solutions' long position.| AcuityAds Holdings vs. Eastman Chemical | AcuityAds Holdings vs. Albemarle | AcuityAds Holdings vs. Fernhill Beverage | AcuityAds Holdings vs. Axalta Coating Systems |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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