Correlation Between Dun Bradstreet and SohuCom

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Dun Bradstreet and SohuCom 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 Dun Bradstreet and SohuCom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dun Bradstreet Holdings and SohuCom, you can compare the effects of market volatilities on Dun Bradstreet and SohuCom 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 Dun Bradstreet with a short position of SohuCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dun Bradstreet and SohuCom.

Diversification Opportunities for Dun Bradstreet and SohuCom

-0.21
  Correlation Coefficient

Very good diversification

The 3 months correlation between Dun and SohuCom is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Dun Bradstreet Holdings and SohuCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SohuCom and Dun Bradstreet 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 Dun Bradstreet Holdings are associated (or correlated) with SohuCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SohuCom has no effect on the direction of Dun Bradstreet i.e., Dun Bradstreet and SohuCom go up and down completely randomly.

Pair Corralation between Dun Bradstreet and SohuCom

Considering the 90-day investment horizon Dun Bradstreet Holdings is expected to generate 0.85 times more return on investment than SohuCom. However, Dun Bradstreet Holdings is 1.17 times less risky than SohuCom. It trades about -0.04 of its potential returns per unit of risk. SohuCom is currently generating about -0.03 per unit of risk. If you would invest  1,684  in Dun Bradstreet Holdings on December 29, 2023 and sell it today you would lose (688.00) from holding Dun Bradstreet Holdings or give up 40.86% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Dun Bradstreet Holdings  vs.  SohuCom

 Performance 
       Timeline  
Dun Bradstreet Holdings 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Dun Bradstreet Holdings 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 somewhat strong which may send shares a bit higher in April 2024. The current disturbance may also be a sign of long term up-swing for the company investors.
SohuCom 

Risk-Adjusted Performance

4 of 100

 
Low
 
High
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in SohuCom are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical indicators, SohuCom may actually be approaching a critical reversion point that can send shares even higher in April 2024.

Dun Bradstreet and SohuCom Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Dun Bradstreet and SohuCom

The main advantage of trading using opposite Dun Bradstreet and SohuCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dun Bradstreet position performs unexpectedly, SohuCom 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 SohuCom will offset losses from the drop in SohuCom's long position.
The idea behind Dun Bradstreet Holdings and SohuCom 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

Other Complementary Tools

Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance