Correlation Between Cardlytics and TRMR Old

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

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

Diversification Opportunities for Cardlytics and TRMR Old

0.05

Correlation Coefficient

Cardlytics  TRMR Old

Significant diversification

The 3 months correlation between Cardlytics and TRMR is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Cardlytics and TRMR Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRMR Old and Cardlytics 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 Cardlytics are associated (or correlated) with TRMR Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRMR Old has no effect on the direction of Cardlytics i.e., Cardlytics and TRMR Old go up and down completely randomly.

Pair Corralation between Cardlytics and TRMR Old

If you would invest  745.00  in TRMR Old on October 10, 2024 and sell it today you would earn a total of  0.00  from holding TRMR Old or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Cardlytics  vs.  TRMR Old

Cardlytics

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Cardlytics are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating essential indicators, Cardlytics showed solid returns over the last few months and may actually be approaching a breakup point.

TRMR Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TRMR Old has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable primary indicators, TRMR Old is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Cardlytics and TRMR Old

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

The idea behind Cardlytics and TRMR Old 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 Stocks Directory module to find actively traded stocks across global markets.