Correlation Between DecisionPoint Systems and DoubleVerify Holdings

Can any of the company-specific risk be diversified away by investing in both DecisionPoint Systems and DoubleVerify Holdings 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 DecisionPoint Systems and DoubleVerify Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between DecisionPoint Systems and DoubleVerify Holdings, you can compare the effects of market volatilities on DecisionPoint Systems and DoubleVerify Holdings 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 DecisionPoint Systems with a short position of DoubleVerify Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of DecisionPoint Systems and DoubleVerify Holdings.

Diversification Opportunities for DecisionPoint Systems and DoubleVerify Holdings

Very good diversification

The 3 months correlation between DecisionPoint and DoubleVerify is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding DecisionPoint Systems and DoubleVerify Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DoubleVerify Holdings and DecisionPoint Systems 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 DecisionPoint Systems are associated (or correlated) with DoubleVerify Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DoubleVerify Holdings has no effect on the direction of DecisionPoint Systems i.e., DecisionPoint Systems and DoubleVerify Holdings go up and down completely randomly.

Pair Corralation between DecisionPoint Systems and DoubleVerify Holdings

Given the investment horizon of 90 days DecisionPoint Systems is expected to generate 1.9 times more return on investment than DoubleVerify Holdings. However, DecisionPoint Systems is 1.9 times more volatile than DoubleVerify Holdings. It trades about -0.19 of its potential returns per unit of risk. DoubleVerify Holdings is currently generating about -0.4 per unit of risk. If you would invest  595.00  in DecisionPoint Systems on June 28, 2023 and sell it today you would lose (92.00) from holding DecisionPoint Systems or give up 15.46% of portfolio value over 90 days.

DecisionPoint Systems  vs.  DoubleVerify Holdings

DecisionPoint Systems

DecisionPoint Performance

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Over the last 90 days DecisionPoint Systems has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, DecisionPoint Systems is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

DoubleVerify Holdings

DoubleVerify Performance

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Over the last 90 days DoubleVerify Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in October 2023. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with DecisionPoint Systems and DoubleVerify Holdings

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

The idea behind DecisionPoint Systems and DoubleVerify Holdings 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.