Correlation Between Magnite and Quotient Technology
Can any of the company-specific risk be diversified away by investing in both Magnite 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 Magnite and Quotient Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnite and Quotient Technology, you can compare the effects of market volatilities on Magnite 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 Magnite with a short position of Quotient Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnite and Quotient Technology.
Diversification Opportunities for Magnite and Quotient Technology
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Magnite and Quotient is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Magnite and Quotient Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quotient Technology 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 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 Magnite i.e., Magnite and Quotient Technology go up and down completely randomly.
Pair Corralation between Magnite and Quotient Technology
If you would invest 1,247 in Magnite on August 26, 2024 and sell it today you would earn a total of 466.00 from holding Magnite or generate 37.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Magnite vs. Quotient Technology
Performance |
| Timeline |
| Magnite |
| Quotient Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Magnite and Quotient Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnite and Quotient Technology
The main advantage of trading using opposite Magnite and Quotient Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnite 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.| Magnite vs. Deluxe | Magnite vs. Clear Channel Outdoor | Magnite vs. Entravision Communications | Magnite vs. Innovid Corp |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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