Correlation Between Advantage Solutions and Dallasnews Corp

Can any of the company-specific risk be diversified away by investing in both Advantage Solutions and Dallasnews Corp 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 Advantage Solutions and Dallasnews Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Advantage Solutions and Dallasnews Corp, you can compare the effects of market volatilities on Advantage Solutions and Dallasnews Corp 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 Advantage Solutions with a short position of Dallasnews Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advantage Solutions and Dallasnews Corp.

Diversification Opportunities for Advantage Solutions and Dallasnews Corp

-0.4

Correlation Coefficient

Advantage Solutions  Dallasnews Corp

Very good diversification

The 3 months correlation between Advantage and Dallasnews is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Advantage Solutions and Dallasnews Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dallasnews Corp and Advantage Solutions 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 Advantage Solutions are associated (or correlated) with Dallasnews Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dallasnews Corp has no effect on the direction of Advantage Solutions i.e., Advantage Solutions and Dallasnews Corp go up and down completely randomly.

Pair Corralation between Advantage Solutions and Dallasnews Corp

Considering the 90-day investment horizon Advantage Solutions is expected to under-perform the Dallasnews Corp. But the stock apears to be less risky and, when comparing its historical volatility, Advantage Solutions is 1.39 times less risky than Dallasnews Corp. The stock trades about -0.02 of its potential returns per unit of risk. The Dallasnews Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  423.00  in Dallasnews Corp on October 9, 2024 and sell it today you would earn a total of  283.00  from holding Dallasnews Corp or generate 66.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Advantage Solutions  vs.  Dallasnews Corp

Advantage Solutions

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Advantage Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Dallasnews Corp

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dallasnews Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent essential indicators, Dallasnews Corp displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Advantage Solutions and Dallasnews Corp

The main advantage of trading using opposite Advantage Solutions and Dallasnews Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advantage Solutions position performs unexpectedly, Dallasnews Corp 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 Dallasnews Corp will offset losses from the drop in Dallasnews Corp's long position.

The idea behind Advantage Solutions and Dallasnews Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.