Correlation Between Marchex and AcuityAds Holdings
Can any of the company-specific risk be diversified away by investing in both Marchex and AcuityAds Holdings 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 Marchex and AcuityAds Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marchex and AcuityAds Holdings, you can compare the effects of market volatilities on Marchex and AcuityAds Holdings 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 Marchex with a short position of AcuityAds Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marchex and AcuityAds Holdings.
Diversification Opportunities for Marchex and AcuityAds Holdings
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Marchex and AcuityAds is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Marchex and AcuityAds Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AcuityAds Holdings and Marchex 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 Marchex are associated (or correlated) with AcuityAds Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AcuityAds Holdings has no effect on the direction of Marchex i.e., Marchex and AcuityAds Holdings go up and down completely randomly.
Pair Corralation between Marchex and AcuityAds Holdings
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 |
Marchex vs. AcuityAds Holdings
Performance |
| Timeline |
| Marchex |
| AcuityAds Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Marchex and AcuityAds Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marchex and AcuityAds Holdings
The main advantage of trading using opposite Marchex and AcuityAds Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marchex position performs unexpectedly, AcuityAds Holdings 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 AcuityAds Holdings will offset losses from the drop in AcuityAds Holdings' long position.| Marchex vs. Entravision Communications | Marchex vs. Direct Digital Holdings | Marchex vs. Cimpress NV | Marchex vs. Townsquare Media |
| AcuityAds Holdings vs. World Houseware Limited | AcuityAds Holdings vs. Skechers USA | AcuityAds Holdings vs. Qorvo Inc | AcuityAds Holdings vs. Edgewell Personal Care |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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