Correlation Between Mirriad Advertising and IClick Interactive
Can any of the company-specific risk be diversified away by investing in both Mirriad Advertising and IClick Interactive 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 Mirriad Advertising and IClick Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mirriad Advertising plc and iClick Interactive Asia, you can compare the effects of market volatilities on Mirriad Advertising and IClick Interactive 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 Mirriad Advertising with a short position of IClick Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirriad Advertising and IClick Interactive.
Diversification Opportunities for Mirriad Advertising and IClick Interactive
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mirriad and IClick is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Mirriad Advertising plc and iClick Interactive Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iClick Interactive Asia and Mirriad Advertising 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 Mirriad Advertising plc are associated (or correlated) with IClick Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iClick Interactive Asia has no effect on the direction of Mirriad Advertising i.e., Mirriad Advertising and IClick Interactive go up and down completely randomly.
Pair Corralation between Mirriad Advertising and IClick Interactive
Assuming the 90 days horizon Mirriad Advertising plc is expected to under-perform the IClick Interactive. In addition to that, Mirriad Advertising is 2.11 times more volatile than iClick Interactive Asia. It trades about -0.21 of its total potential returns per unit of risk. iClick Interactive Asia is currently generating about 0.28 per unit of volatility. If you would invest 311.00 in iClick Interactive Asia on August 24, 2024 and sell it today you would earn a total of 99.00 from holding iClick Interactive Asia or generate 31.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirriad Advertising plc vs. iClick Interactive Asia
Performance |
| Timeline |
| Mirriad Advertising plc |
| iClick Interactive Asia |
Mirriad Advertising and IClick Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirriad Advertising and IClick Interactive
The main advantage of trading using opposite Mirriad Advertising and IClick Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirriad Advertising position performs unexpectedly, IClick Interactive 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 IClick Interactive will offset losses from the drop in IClick Interactive's long position.| Mirriad Advertising vs. Marchex | Mirriad Advertising vs. Snipp Interactive | Mirriad Advertising vs. Emerald Expositions Events |
| IClick Interactive vs. Mirriad Advertising plc | IClick Interactive vs. INEO Tech Corp | IClick Interactive vs. Kidoz Inc | IClick Interactive vs. Marchex |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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