Correlation Between Cdk Global and Doubleverify Holdings

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

Diversification Opportunities for Cdk Global and Doubleverify Holdings

-0.58
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Cdk Global and Doubleverify is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Cdk Global and Doubleverify Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleverify Holdings and Cdk Global 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 Cdk Global 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 Cdk Global i.e., Cdk Global and Doubleverify Holdings go up and down completely randomly.

Pair Corralation between Cdk Global and Doubleverify Holdings

Considering the 90-day investment horizon Cdk Global is expected to generate 1.4 times less return on investment than Doubleverify Holdings. But when comparing it to its historical volatility, Cdk Global is 15.91 times less risky than Doubleverify Holdings. It trades about 0.21 of its potential returns per unit of risk. Doubleverify Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  2,225  in Doubleverify Holdings on March 31, 2022 and sell it today you would earn a total of  3.00  from holding Doubleverify Holdings or generate 0.13% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Cdk Global  vs.  Doubleverify Holdings

 Performance (%) 
      Timeline 
Cdk Global 
Cdk Global Performance
10 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Cdk Global are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak fundamental indicators, Cdk Global demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Structure and Payout Changes

Forward Annual Dividend Yield
0.011
Payout Ratio
0.2
Forward Annual Dividend Rate
0.6
Dividend Date
2022-06-29
Ex Dividend Date
2022-06-16

Cdk Global Price Channel

Doubleverify Holdings 
Doubleverify Performance
0 of 100
Over the last 90 days Doubleverify Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest sluggish performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Doubleverify Price Channel

Cdk Global and Doubleverify Holdings Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Cdk Global and Doubleverify Holdings

The main advantage of trading using opposite Cdk Global and Doubleverify Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cdk Global 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 Cdk Global 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.
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

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