Correlation Between ANGI Homeservices and Comscore

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

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

Diversification Opportunities for ANGI Homeservices and Comscore

0.52

Correlation Coefficient

ANGI Homeservices  Comscore

Very weak diversification

The 3 months correlation between ANGI and Comscore is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding ANGI Homeservices and Comscore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comscore and ANGI Homeservices 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 ANGI Homeservices 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 ANGI Homeservices i.e., ANGI Homeservices and Comscore go up and down completely randomly.

Pair Corralation between ANGI Homeservices and Comscore

Given the investment horizon of 90 days ANGI Homeservices is expected to generate 11.21 times less return on investment than Comscore. But when comparing it to its historical volatility, ANGI Homeservices is 2.01 times less risky than Comscore. It trades about 0.01 of its potential returns per unit of risk. Comscore is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  587.00  in Comscore on December 26, 2024 and sell it today you would earn a total of  134.00  from holding Comscore or generate 22.83% return on investment over 90 days.

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

ANGI Homeservices  vs.  Comscore

ANGI Homeservices

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ANGI Homeservices are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong technical and fundamental indicators, ANGI Homeservices is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Comscore

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Comscore are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Comscore reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ANGI Homeservices and Comscore

The main advantage of trading using opposite ANGI Homeservices and Comscore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGI Homeservices 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.

The idea behind ANGI Homeservices and Comscore 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.