Correlation Between DoubleVerify Holdings and ADEIA P

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

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

Diversification Opportunities for DoubleVerify Holdings and ADEIA P

0.18

Correlation Coefficient

DoubleVerify Holdings  ADEIA P

Average diversification

The 3 months correlation between DoubleVerify and ADEIA is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding DoubleVerify Holdings and ADEIA P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADEIA P and DoubleVerify Holdings 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 DoubleVerify Holdings are associated (or correlated) with ADEIA P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADEIA P has no effect on the direction of DoubleVerify Holdings i.e., DoubleVerify Holdings and ADEIA P go up and down completely randomly.

Pair Corralation between DoubleVerify Holdings and ADEIA P

Allowing for the 90-day total investment horizon DoubleVerify Holdings is expected to generate 6.32 times less return on investment than ADEIA P. In addition to that, DoubleVerify Holdings is 1.11 times more volatile than ADEIA P. It trades about 0.01 of its total potential returns per unit of risk. ADEIA P is currently generating about 0.04 per unit of volatility. If you would invest  1,040  in ADEIA P on October 9, 2024 and sell it today you would earn a total of  388.00  from holding ADEIA P or generate 37.31% return on investment over 90 days.

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

DoubleVerify Holdings  vs.  ADEIA P

DoubleVerify Holdings

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in DoubleVerify Holdings are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, DoubleVerify Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

ADEIA P

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ADEIA P are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating technical and fundamental indicators, ADEIA P sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DoubleVerify Holdings and ADEIA P

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

The idea behind DoubleVerify Holdings and ADEIA P 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.