Correlation Between ChannelAdvisor Corp and DoubleVerify Holdings

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

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

Diversification Opportunities for ChannelAdvisor Corp and DoubleVerify Holdings

-0.47

Correlation Coefficient

ChannelAdvisor Corp  DoubleVerify Holdings

Very good diversification

The 3 months correlation between ChannelAdvisor and DoubleVerify is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding ChannelAdvisor Corp and DoubleVerify Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DoubleVerify Holdings and ChannelAdvisor Corp 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 ChannelAdvisor Corp 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 ChannelAdvisor Corp i.e., ChannelAdvisor Corp and DoubleVerify Holdings go up and down completely randomly.

Pair Corralation between ChannelAdvisor Corp and DoubleVerify Holdings

If you would invest  3,227  in DoubleVerify Holdings on January 19, 2024 and sell it today you would lose (213.00) from holding DoubleVerify Holdings or give up 6.6% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	0.44%
Values	Daily Returns

ChannelAdvisor Corp  vs.  DoubleVerify Holdings

ChannelAdvisor Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ChannelAdvisor Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, ChannelAdvisor Corp is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

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 conflicting performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in May 2024. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with ChannelAdvisor Corp and DoubleVerify Holdings

The main advantage of trading using opposite ChannelAdvisor Corp and DoubleVerify Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChannelAdvisor Corp 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 ChannelAdvisor Corp 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.

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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.