Correlation Between Beasley Broadcast and Cardlytics
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 Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Beasley Broadcast Group vs. Cardlytics
Performance |
Timeline |
Beasley Broadcast |
Cardlytics |
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.Beasley Broadcast vs. Marchex | Beasley Broadcast vs. Mediaco Holding | Beasley Broadcast vs. IQIYI Inc | Beasley Broadcast vs. Sea |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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