Correlation Between IClick Interactive and Stagwell

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

By analyzing existing cross correlation between iClick Interactive Asia and Stagwell, you can compare the effects of market volatilities on IClick Interactive and Stagwell 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 IClick Interactive with a short position of Stagwell. Check out your portfolio center. Please also check ongoing floating volatility patterns of IClick Interactive and Stagwell.

Diversification Opportunities for IClick Interactive and Stagwell

-0.24

Correlation Coefficient

IClick Interactive  Stagwell

Very good diversification

The 3 months correlation between IClick and Stagwell is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding iClick Interactive Asia and Stagwell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stagwell and IClick Interactive 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 iClick Interactive Asia are associated (or correlated) with Stagwell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stagwell has no effect on the direction of IClick Interactive i.e., IClick Interactive and Stagwell go up and down completely randomly.

Pair Corralation between IClick Interactive and Stagwell

Given the investment horizon of 90 days iClick Interactive Asia is expected to under-perform the Stagwell. In addition to that, IClick Interactive is 1.11 times more volatile than Stagwell. It trades about -0.21 of its total potential returns per unit of risk. Stagwell is currently generating about -0.15 per unit of volatility. If you would invest  612.00  in Stagwell on January 20, 2024 and sell it today you would lose (58.00) from holding Stagwell or give up 9.48% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

iClick Interactive Asia  vs.  Stagwell

iClick Interactive Asia

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days iClick Interactive Asia has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's essential indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Stagwell

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Stagwell 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 technical and fundamental 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 IClick Interactive and Stagwell

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

The idea behind iClick Interactive Asia and Stagwell 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.