Correlation Between Locafy and Comscore
Can any of the company-specific risk be diversified away by investing in both Locafy and Comscore 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 Locafy and Comscore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Locafy and Comscore, you can compare the effects of market volatilities on Locafy and Comscore 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 Locafy with a short position of Comscore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Locafy and Comscore.
Diversification Opportunities for Locafy and Comscore
Modest diversification
The 3 months correlation between Locafy and Comscore is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Locafy and Comscore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comscore and Locafy 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 Locafy are associated (or correlated) with Comscore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comscore has no effect on the direction of Locafy i.e., Locafy and Comscore go up and down completely randomly.
Pair Corralation between Locafy and Comscore
Given the investment horizon of 90 days Locafy is expected to generate 0.7 times more return on investment than Comscore. However, Locafy is 1.43 times less risky than Comscore. It trades about 0.22 of its potential returns per unit of risk. Comscore is currently generating about 0.12 per unit of risk. If you would invest 510.00 in Locafy on August 24, 2024 and sell it today you would earn a total of 165.00 from holding Locafy or generate 32.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Locafy vs. Comscore
Performance |
| Timeline |
| Locafy |
| Comscore |
Locafy and Comscore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Locafy and Comscore
The main advantage of trading using opposite Locafy and Comscore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Locafy position performs unexpectedly, Comscore 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 Comscore will offset losses from the drop in Comscore's long position.| Locafy vs. Metalpha Technology Holding | Locafy vs. 36Kr Holdings | Locafy vs. TuanChe ADR | Locafy vs. Quizam Media |
| Comscore vs. Cheetah Mobile | Comscore vs. PropertyGuru Group | Comscore vs. EverQuote Class A | Comscore vs. TechTarget |
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 Stocks Directory module to find actively traded stocks across global markets.
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