Correlation Between AcuityAds Holdings and Marchex
Can any of the company-specific risk be diversified away by investing in both AcuityAds Holdings and Marchex 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 Marchex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AcuityAds Holdings and Marchex, you can compare the effects of market volatilities on AcuityAds Holdings and Marchex 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 Marchex. Check out your portfolio center. Please also check ongoing floating volatility patterns of AcuityAds Holdings and Marchex.
Diversification Opportunities for AcuityAds Holdings and Marchex
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AcuityAds and Marchex is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding AcuityAds Holdings and Marchex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marchex 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 Marchex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marchex has no effect on the direction of AcuityAds Holdings i.e., AcuityAds Holdings and Marchex go up and down completely randomly.
Pair Corralation between AcuityAds Holdings and Marchex
If you would invest 187.00 in Marchex on November 3, 2024 and sell it today you would earn a total of 16.00 from holding Marchex or generate 8.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
AcuityAds Holdings vs. Marchex
Performance |
| Timeline |
| AcuityAds Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Marchex |
AcuityAds Holdings and Marchex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AcuityAds Holdings and Marchex
The main advantage of trading using opposite AcuityAds Holdings and Marchex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AcuityAds Holdings position performs unexpectedly, Marchex 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 Marchex will offset losses from the drop in Marchex's long position.| AcuityAds Holdings vs. World Houseware Limited | AcuityAds Holdings vs. Skechers USA | AcuityAds Holdings vs. Qorvo Inc | AcuityAds Holdings vs. Edgewell Personal Care |
| Marchex vs. Entravision Communications | Marchex vs. Direct Digital Holdings | Marchex vs. Cimpress NV | Marchex vs. Townsquare Media |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |