Correlation Between TechTarget, Common and Perion Network

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

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

Diversification Opportunities for TechTarget, Common and Perion Network

-0.13

Correlation Coefficient

TechTarget, Common  Perion Network

Good diversification

The 3 months correlation between TechTarget, and Perion is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding TechTarget, Common Stock and Perion Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perion Network and TechTarget, Common 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 TechTarget, Common Stock are associated (or correlated) with Perion Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perion Network has no effect on the direction of TechTarget, Common i.e., TechTarget, Common and Perion Network go up and down completely randomly.

Pair Corralation between TechTarget, Common and Perion Network

Given the investment horizon of 90 days TechTarget, Common Stock is expected to under-perform the Perion Network. In addition to that, TechTarget, Common is 1.74 times more volatile than Perion Network. It trades about -0.22 of its total potential returns per unit of risk. Perion Network is currently generating about 0.27 per unit of volatility. If you would invest  834.00  in Perion Network on October 24, 2024 and sell it today you would earn a total of  57.00  from holding Perion Network or generate 6.83% return on investment over 90 days.

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

TechTarget, Common Stock  vs.  Perion Network

TechTarget, Common Stock

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TechTarget, Common Stock has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Perion Network

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Perion Network are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Perion Network demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TechTarget, Common and Perion Network

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

The idea behind TechTarget, Common Stock and Perion Network 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.