Correlation Between Genius Sports and Thryv Holdings

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

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

Diversification Opportunities for Genius Sports and Thryv Holdings

0.37

Correlation Coefficient

Genius Sports  Thryv Holdings

Weak diversification

The 3 months correlation between Genius and Thryv is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Genius Sports and Thryv Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thryv Holdings and Genius Sports 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 Genius Sports are associated (or correlated) with Thryv Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thryv Holdings has no effect on the direction of Genius Sports i.e., Genius Sports and Thryv Holdings go up and down completely randomly.

Pair Corralation between Genius Sports and Thryv Holdings

Given the investment horizon of 90 days Genius Sports is expected to under-perform the Thryv Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Genius Sports is 1.01 times less risky than Thryv Holdings. The stock trades about -0.11 of its potential returns per unit of risk. The Thryv Holdings is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  1,582  in Thryv Holdings on November 28, 2024 and sell it today you would earn a total of  229.00  from holding Thryv Holdings or generate 14.48% return on investment over 90 days.

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

Genius Sports  vs.  Thryv Holdings

Genius Sports

Risk-Adjusted Performance

Very Weak

Over the last 90 days Genius Sports has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in March 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Thryv Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Thryv Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, Thryv Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Genius Sports and Thryv Holdings

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

The idea behind Genius Sports and Thryv Holdings 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.

Check out your portfolio center.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.