Correlation Between Advantage Solutions and Quotient Technology
Can any of the company-specific risk be diversified away by investing in both Advantage Solutions and Quotient Technology 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 Advantage Solutions and Quotient Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advantage Solutions and Quotient Technology, you can compare the effects of market volatilities on Advantage Solutions and Quotient Technology 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 Advantage Solutions with a short position of Quotient Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advantage Solutions and Quotient Technology.
Diversification Opportunities for Advantage Solutions and Quotient Technology
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Advantage and Quotient is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Advantage Solutions and Quotient Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quotient Technology and Advantage Solutions 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 Advantage Solutions are associated (or correlated) with Quotient Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quotient Technology has no effect on the direction of Advantage Solutions i.e., Advantage Solutions and Quotient Technology go up and down completely randomly.
Pair Corralation between Advantage Solutions and Quotient Technology
If you would invest 306.00 in Advantage Solutions on September 1, 2024 and sell it today you would earn a total of 50.00 from holding Advantage Solutions or generate 16.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Advantage Solutions vs. Quotient Technology
Performance |
| Timeline |
| Advantage Solutions |
| Quotient Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Advantage Solutions and Quotient Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advantage Solutions and Quotient Technology
The main advantage of trading using opposite Advantage Solutions and Quotient Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advantage Solutions position performs unexpectedly, Quotient Technology 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 Quotient Technology will offset losses from the drop in Quotient Technology's long position.| Advantage Solutions vs. Criteo Sa | Advantage Solutions vs. Deluxe | Advantage Solutions vs. Emerald Expositions Events | Advantage Solutions vs. Marchex |
| Quotient Technology vs. Emerald Expositions Events | Quotient Technology vs. Mirriad Advertising plc | Quotient Technology vs. INEO Tech Corp | Quotient Technology vs. Marchex |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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