Correlation Between Mirriad Advertising and IClick Interactive

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

By analyzing existing cross correlation between Mirriad Advertising plc and iClick Interactive Asia, you can compare the effects of market volatilities on Mirriad Advertising and IClick Interactive 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 Mirriad Advertising with a short position of IClick Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirriad Advertising and IClick Interactive.

Diversification Opportunities for Mirriad Advertising and IClick Interactive

-0.75

Correlation Coefficient

Mirriad Advertising  IClick Interactive

Pay attention - limited upside

The 3 months correlation between Mirriad and IClick is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Mirriad Advertising plc and iClick Interactive Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iClick Interactive Asia and Mirriad Advertising 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 Mirriad Advertising plc are associated (or correlated) with IClick Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iClick Interactive Asia has no effect on the direction of Mirriad Advertising i.e., Mirriad Advertising and IClick Interactive go up and down completely randomly.

Pair Corralation between Mirriad Advertising and IClick Interactive

If you would invest  800.00  in iClick Interactive Asia on October 10, 2024 and sell it today you would earn a total of  82.00  from holding iClick Interactive Asia or generate 10.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.24%
Values	Daily Returns

Mirriad Advertising plc  vs.  iClick Interactive Asia

Mirriad Advertising plc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mirriad Advertising plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

iClick Interactive Asia

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in iClick Interactive Asia are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile essential indicators, IClick Interactive disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mirriad Advertising and IClick Interactive

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

The idea behind Mirriad Advertising plc and iClick Interactive Asia 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.