Correlation Between Daily Journal and Viant Technology

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

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

Diversification Opportunities for Daily Journal and Viant Technology

0.15

Correlation Coefficient

Daily Journal  Viant Technology

Average diversification

The 3 months correlation between Daily and Viant is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Daily Journal Corp and Viant Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viant Technology and Daily Journal 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 Daily Journal Corp are associated (or correlated) with Viant Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viant Technology has no effect on the direction of Daily Journal i.e., Daily Journal and Viant Technology go up and down completely randomly.

Pair Corralation between Daily Journal and Viant Technology

Given the investment horizon of 90 days Daily Journal Corp is expected to generate 0.5 times more return on investment than Viant Technology. However, Daily Journal Corp is 2.01 times less risky than Viant Technology. It trades about -0.18 of its potential returns per unit of risk. Viant Technology is currently generating about -0.11 per unit of risk. If you would invest  55,810  in Daily Journal Corp on December 27, 2024 and sell it today you would lose (14,900) from holding Daily Journal Corp or give up 26.7% of portfolio value over 90 days.

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

Daily Journal Corp  vs.  Viant Technology

Daily Journal Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Daily Journal Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Viant Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Viant Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Even with abnormal performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Daily Journal and Viant Technology

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

The idea behind Daily Journal Corp and Viant Technology 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.