Correlation Between DoubleVerify Holdings and Blackline

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

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

Diversification Opportunities for DoubleVerify Holdings and Blackline

-0.7

Correlation Coefficient

DoubleVerify Holdings  Blackline

Excellent diversification

The 3 months correlation between DoubleVerify and Blackline is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding DoubleVerify Holdings and Blackline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackline 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 Blackline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackline has no effect on the direction of DoubleVerify Holdings i.e., DoubleVerify Holdings and Blackline go up and down completely randomly.

Pair Corralation between DoubleVerify Holdings and Blackline

Allowing for the 90-day total investment horizon DoubleVerify Holdings is expected to under-perform the Blackline. In addition to that, DoubleVerify Holdings is 1.06 times more volatile than Blackline. It trades about -0.18 of its total potential returns per unit of risk. Blackline is currently generating about 0.42 per unit of volatility. If you would invest  4,771  in Blackline on July 10, 2024 and sell it today you would earn a total of  664.00  from holding Blackline or generate 13.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.45%
Values	Daily Returns

DoubleVerify Holdings  vs.  Blackline

DoubleVerify Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DoubleVerify Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in November 2024. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Blackline

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Blackline are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent essential indicators, Blackline disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DoubleVerify Holdings and Blackline

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

The idea behind DoubleVerify Holdings and Blackline 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.