Correlation Between Autoscope Technologies and Doubleverify Holdings

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Can any of the company-specific risk be diversified away by investing in both Autoscope Technologies 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 Autoscope Technologies and Doubleverify Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autoscope Technologies Corp and Doubleverify Holdings, you can compare the effects of market volatilities on Autoscope Technologies 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 Autoscope Technologies with a short position of Doubleverify Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autoscope Technologies and Doubleverify Holdings.

Diversification Opportunities for Autoscope Technologies and Doubleverify Holdings

-0.33
  Correlation Coefficient

Very good diversification

The 3 months correlation between Autoscope and Doubleverify is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Autoscope Technologies Corp and Doubleverify Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleverify Holdings and Autoscope Technologies 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 Autoscope Technologies 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 Autoscope Technologies i.e., Autoscope Technologies and Doubleverify Holdings go up and down completely randomly.

Pair Corralation between Autoscope Technologies and Doubleverify Holdings

Given the investment horizon of 90 days Autoscope Technologies Corp is expected to under-perform the Doubleverify Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Autoscope Technologies Corp is 1.85 times less risky than Doubleverify Holdings. The stock trades about -0.17 of its potential returns per unit of risk. The Doubleverify Holdings is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  2,468  in Doubleverify Holdings on July 2, 2022 and sell it today you would earn a total of  267.00  from holding Doubleverify Holdings or generate 10.82% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Autoscope Technologies Corp  vs.  Doubleverify Holdings

 Performance (%) 
       Timeline  
Autoscope Technologies 
Autoscope Performance
0 of 100
Over the last 90 days Autoscope Technologies Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in October 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Autoscope Price Channel

Doubleverify Holdings 
Doubleverify Performance
5 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Doubleverify Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Doubleverify Holdings may actually be approaching a critical reversion point that can send shares even higher in October 2022.

Doubleverify Price Channel

Autoscope Technologies and Doubleverify Holdings Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Autoscope Technologies and Doubleverify Holdings

The main advantage of trading using opposite Autoscope Technologies and Doubleverify Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autoscope Technologies 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.
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The idea behind Autoscope Technologies 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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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

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