Correlation Between Comscore and Locafy
Can any of the company-specific risk be diversified away by investing in both Comscore and Locafy 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 Comscore and Locafy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comscore and Locafy, you can compare the effects of market volatilities on Comscore and Locafy 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 Comscore with a short position of Locafy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comscore and Locafy.
Diversification Opportunities for Comscore and Locafy
Modest diversification
The 3 months correlation between Comscore and Locafy is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Comscore and Locafy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Locafy and Comscore 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 Comscore are associated (or correlated) with Locafy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Locafy has no effect on the direction of Comscore i.e., Comscore and Locafy go up and down completely randomly.
Pair Corralation between Comscore and Locafy
Given the investment horizon of 90 days Comscore is expected to generate 1.32 times less return on investment than Locafy. In addition to that, Comscore is 1.43 times more volatile than Locafy. It trades about 0.12 of its total potential returns per unit of risk. Locafy is currently generating about 0.22 per unit of volatility. 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 |
Comscore vs. Locafy
Performance |
| Timeline |
| Comscore |
| Locafy |
Comscore and Locafy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comscore and Locafy
The main advantage of trading using opposite Comscore and Locafy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comscore position performs unexpectedly, Locafy 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 Locafy will offset losses from the drop in Locafy's long position.| Comscore vs. Cheetah Mobile | Comscore vs. PropertyGuru Group | Comscore vs. EverQuote Class A | Comscore vs. TechTarget |
| Locafy vs. Metalpha Technology Holding | Locafy vs. 36Kr Holdings | Locafy vs. TuanChe ADR | Locafy vs. Quizam 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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