Correlation Between Beasley Broadcast and Cardlytics

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

Diversification Opportunities for Beasley Broadcast and Cardlytics

-0.5
  Correlation Coefficient

Very good diversification

The 3 months correlation between Beasley and Cardlytics is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Beasley Broadcast Group and Cardlytics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardlytics and Beasley Broadcast 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 Beasley Broadcast Group are associated (or correlated) with Cardlytics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardlytics has no effect on the direction of Beasley Broadcast i.e., Beasley Broadcast and Cardlytics go up and down completely randomly.

Pair Corralation between Beasley Broadcast and Cardlytics

Given the investment horizon of 90 days Beasley Broadcast Group is expected to under-perform the Cardlytics. But the stock apears to be less risky and, when comparing its historical volatility, Beasley Broadcast Group is 4.3 times less risky than Cardlytics. The stock trades about -0.01 of its potential returns per unit of risk. The Cardlytics is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  818.00  in Cardlytics on December 29, 2023 and sell it today you would earn a total of  646.00  from holding Cardlytics or generate 78.97% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Beasley Broadcast Group  vs.  Cardlytics

 Performance 
       Timeline  
Beasley Broadcast 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Beasley Broadcast Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Beasley Broadcast is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.
Cardlytics 

Risk-Adjusted Performance

8 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Cardlytics are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal essential indicators, Cardlytics showed solid returns over the last few months and may actually be approaching a breakup point.

Beasley Broadcast and Cardlytics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Beasley Broadcast and Cardlytics

The main advantage of trading using opposite Beasley Broadcast and Cardlytics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beasley Broadcast position performs unexpectedly, Cardlytics 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 Cardlytics will offset losses from the drop in Cardlytics' long position.
The idea behind Beasley Broadcast Group and Cardlytics 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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