Correlation Between Cardlytics and CuriosityStream
Can any of the company-specific risk be diversified away by investing in both Cardlytics and CuriosityStream 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 Cardlytics and CuriosityStream into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardlytics and CuriosityStream, you can compare the effects of market volatilities on Cardlytics and CuriosityStream 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 Cardlytics with a short position of CuriosityStream. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardlytics and CuriosityStream.
Diversification Opportunities for Cardlytics and CuriosityStream
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cardlytics and CuriosityStream is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Cardlytics and CuriosityStream in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CuriosityStream and Cardlytics 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 Cardlytics are associated (or correlated) with CuriosityStream. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CuriosityStream has no effect on the direction of Cardlytics i.e., Cardlytics and CuriosityStream go up and down completely randomly.
Pair Corralation between Cardlytics and CuriosityStream
Given the investment horizon of 90 days Cardlytics is expected to under-perform the CuriosityStream. But the stock apears to be less risky and, when comparing its historical volatility, Cardlytics is 5.89 times less risky than CuriosityStream. The stock trades about -0.25 of its potential returns per unit of risk. The CuriosityStream is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2.01 in CuriosityStream on January 28, 2024 and sell it today you would earn a total of 0.63 from holding CuriosityStream or generate 31.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.24% |
Values | Daily Returns |
Cardlytics vs. CuriosityStream
Performance |
Timeline |
Cardlytics |
CuriosityStream |
Cardlytics and CuriosityStream Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cardlytics and CuriosityStream
The main advantage of trading using opposite Cardlytics and CuriosityStream positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardlytics position performs unexpectedly, CuriosityStream 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 CuriosityStream will offset losses from the drop in CuriosityStream's long position.Cardlytics vs. Mirriad Advertising plc | Cardlytics vs. INEO Tech Corp | Cardlytics vs. Entravision Communications | Cardlytics vs. Cimpress NV |
CuriosityStream vs. Eos Energy Enterprises | CuriosityStream vs. CannBioRx Life Sciences | CuriosityStream vs. Whole Earth Brands | CuriosityStream vs. Advantage Solutions |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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