Correlation Between GEE and DoubleVerify Holdings

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

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

Diversification Opportunities for GEE and DoubleVerify Holdings

0.7

Correlation Coefficient

GEE  DoubleVerify Holdings

Poor diversification

The 3 months correlation between GEE and DoubleVerify is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding GEE Group and DoubleVerify Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DoubleVerify Holdings and GEE 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 GEE Group 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 GEE i.e., GEE and DoubleVerify Holdings go up and down completely randomly.

Pair Corralation between GEE and DoubleVerify Holdings

Considering the 90-day investment horizon GEE Group is expected to generate 0.82 times more return on investment than DoubleVerify Holdings. However, GEE Group is 1.22 times less risky than DoubleVerify Holdings. It trades about -0.15 of its potential returns per unit of risk. DoubleVerify Holdings is currently generating about -0.22 per unit of risk. If you would invest  35.00  in GEE Group on January 19, 2024 and sell it today you would lose (2.00) from holding GEE Group or give up 5.71% of portfolio value over 90 days.

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

GEE Group  vs.  DoubleVerify Holdings

GEE Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GEE Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in May 2024. The current disturbance may also be a sign of long term up-swing for the company 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 GEE and DoubleVerify Holdings

The main advantage of trading using opposite GEE and DoubleVerify Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEE 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 GEE Group 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.