Correlation Between DoubleVerify Holdings and ACV Auctions
Can any of the company-specific risk be diversified away by investing in both DoubleVerify Holdings and ACV Auctions 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 DoubleVerify Holdings and ACV Auctions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DoubleVerify Holdings and ACV Auctions, you can compare the effects of market volatilities on DoubleVerify Holdings and ACV Auctions 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 DoubleVerify Holdings with a short position of ACV Auctions. Check out your portfolio center. Please also check ongoing floating volatility patterns of DoubleVerify Holdings and ACV Auctions.
Diversification Opportunities for DoubleVerify Holdings and ACV Auctions
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DoubleVerify and ACV is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding DoubleVerify Holdings and ACV Auctions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACV Auctions and DoubleVerify Holdings 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 DoubleVerify Holdings are associated (or correlated) with ACV Auctions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACV Auctions has no effect on the direction of DoubleVerify Holdings i.e., DoubleVerify Holdings and ACV Auctions go up and down completely randomly.
Pair Corralation between DoubleVerify Holdings and ACV Auctions
Allowing for the 90-day total investment horizon DoubleVerify Holdings is expected to under-perform the ACV Auctions. In addition to that, DoubleVerify Holdings is 1.84 times more volatile than ACV Auctions. It trades about -0.17 of its total potential returns per unit of risk. ACV Auctions is currently generating about 0.1 per unit of volatility. If you would invest 1,454 in ACV Auctions on February 11, 2024 and sell it today you would earn a total of 275.00 from holding ACV Auctions or generate 18.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
DoubleVerify Holdings vs. ACV Auctions
Performance |
Timeline |
DoubleVerify Holdings |
ACV Auctions |
DoubleVerify Holdings and ACV Auctions Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with DoubleVerify Holdings and ACV Auctions
The main advantage of trading using opposite DoubleVerify Holdings and ACV Auctions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DoubleVerify Holdings position performs unexpectedly, ACV Auctions 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 ACV Auctions will offset losses from the drop in ACV Auctions' long position.DoubleVerify Holdings vs. Blackline | DoubleVerify Holdings vs. Manhattan Associates | DoubleVerify Holdings vs. Aspen Technology | DoubleVerify Holdings vs. ANSYS Inc |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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