Correlation Between Comscore and ANGI Homeservices

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

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

Diversification Opportunities for Comscore and ANGI Homeservices

-0.55

Correlation Coefficient

Comscore  ANGI Homeservices

Excellent diversification

The 3 months correlation between Comscore and ANGI is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Comscore and ANGI Homeservices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANGI Homeservices and Comscore 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 Comscore are associated (or correlated) with ANGI Homeservices. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANGI Homeservices has no effect on the direction of Comscore i.e., Comscore and ANGI Homeservices go up and down completely randomly.

Pair Corralation between Comscore and ANGI Homeservices

Given the investment horizon of 90 days Comscore is expected to generate 1.46 times more return on investment than ANGI Homeservices. However, Comscore is 1.46 times more volatile than ANGI Homeservices. It trades about 0.05 of its potential returns per unit of risk. ANGI Homeservices is currently generating about -0.11 per unit of risk. If you would invest  676.00  in Comscore on September 13, 2024 and sell it today you would earn a total of  33.00  from holding Comscore or generate 4.88% return on investment over 90 days.

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

Comscore  vs.  ANGI Homeservices

Comscore

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Comscore are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Comscore reported solid returns over the last few months and may actually be approaching a breakup point.

ANGI Homeservices

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Comscore and ANGI Homeservices

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

The idea behind Comscore and ANGI Homeservices 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.