Correlation Between Magnite and QuinStreet
Can any of the company-specific risk be diversified away by investing in both Magnite and QuinStreet 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 Magnite and QuinStreet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnite and QuinStreet, you can compare the effects of market volatilities on Magnite and QuinStreet 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 Magnite with a short position of QuinStreet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnite and QuinStreet.
Diversification Opportunities for Magnite and QuinStreet
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Magnite and QuinStreet is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Magnite and QuinStreet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QuinStreet and Magnite 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 Magnite are associated (or correlated) with QuinStreet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QuinStreet has no effect on the direction of Magnite i.e., Magnite and QuinStreet go up and down completely randomly.
Pair Corralation between Magnite and QuinStreet
Given the investment horizon of 90 days Magnite is expected to under-perform the QuinStreet. In addition to that, Magnite is 1.6 times more volatile than QuinStreet. It trades about -0.12 of its total potential returns per unit of risk. QuinStreet is currently generating about -0.18 per unit of volatility. If you would invest 2,223 in QuinStreet on January 16, 2025 and sell it today you would lose (695.00) from holding QuinStreet or give up 31.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magnite vs. QuinStreet
Performance |
| Timeline |
| Magnite |
| QuinStreet |
Magnite and QuinStreet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnite and QuinStreet
The main advantage of trading using opposite Magnite and QuinStreet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnite position performs unexpectedly, QuinStreet 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 QuinStreet will offset losses from the drop in QuinStreet's long position.| Magnite vs. Deluxe | Magnite vs. Clear Channel Outdoor | Magnite vs. Entravision Communications | Magnite vs. Criteo Sa |
| QuinStreet vs. TechTarget, Common Stock | QuinStreet vs. Tactile Systems Technology | QuinStreet vs. NMI Holdings | QuinStreet vs. Phibro Animal Health |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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