Correlation Between DoubleVerify Holdings and Viant Technology

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

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

Diversification Opportunities for DoubleVerify Holdings and Viant Technology

0.67

Correlation Coefficient

DoubleVerify Holdings  Viant Technology

Poor diversification

The 3 months correlation between DoubleVerify and Viant is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding DoubleVerify Holdings and Viant Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viant Technology 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 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 DoubleVerify Holdings i.e., DoubleVerify Holdings and Viant Technology go up and down completely randomly.

Pair Corralation between DoubleVerify Holdings and Viant Technology

Allowing for the 90-day total investment horizon DoubleVerify Holdings is expected to generate 9.35 times less return on investment than Viant Technology. But when comparing it to its historical volatility, DoubleVerify Holdings is 1.67 times less risky than Viant Technology. It trades about 0.05 of its potential returns per unit of risk. Viant Technology is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  1,043  in Viant Technology on August 31, 2024 and sell it today you would earn a total of  781.00  from holding Viant Technology or generate 74.88% return on investment over 90 days.

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

DoubleVerify Holdings  vs.  Viant Technology

DoubleVerify Holdings

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in DoubleVerify Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, DoubleVerify Holdings may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Viant Technology

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Viant Technology are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal basic indicators, Viant Technology reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DoubleVerify Holdings and Viant Technology

The main advantage of trading using opposite DoubleVerify Holdings and Viant Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DoubleVerify Holdings 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 DoubleVerify Holdings 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.