Correlation Between AcuityAds Holdings and Emerald Expositions
Can any of the company-specific risk be diversified away by investing in both AcuityAds Holdings and Emerald Expositions 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 Emerald Expositions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AcuityAds Holdings and Emerald Expositions Events, you can compare the effects of market volatilities on AcuityAds Holdings and Emerald Expositions 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 Emerald Expositions. Check out your portfolio center. Please also check ongoing floating volatility patterns of AcuityAds Holdings and Emerald Expositions.
Diversification Opportunities for AcuityAds Holdings and Emerald Expositions
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AcuityAds and Emerald is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding AcuityAds Holdings and Emerald Expositions Events in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerald Expositions 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 Emerald Expositions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerald Expositions has no effect on the direction of AcuityAds Holdings i.e., AcuityAds Holdings and Emerald Expositions go up and down completely randomly.
Pair Corralation between AcuityAds Holdings and Emerald Expositions
If you would invest 464.00 in Emerald Expositions Events on August 27, 2024 and sell it today you would earn a total of 42.00 from holding Emerald Expositions Events or generate 9.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
AcuityAds Holdings vs. Emerald Expositions Events
Performance |
| Timeline |
| AcuityAds Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Emerald Expositions |
AcuityAds Holdings and Emerald Expositions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AcuityAds Holdings and Emerald Expositions
The main advantage of trading using opposite AcuityAds Holdings and Emerald Expositions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AcuityAds Holdings position performs unexpectedly, Emerald Expositions 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 Emerald Expositions will offset losses from the drop in Emerald Expositions' long position.| AcuityAds Holdings vs. Juniata Valley Financial | AcuityAds Holdings vs. EvoAir Holdings | AcuityAds Holdings vs. Univest Pennsylvania | AcuityAds Holdings vs. Alaska Air Group |
| Emerald Expositions vs. Mirriad Advertising plc | Emerald Expositions vs. INEO Tech Corp | Emerald Expositions vs. Marchex | Emerald Expositions vs. Innovid Corp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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