Correlation Between MGO Global and Quotient Technology

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

Diversification Opportunities for MGO Global and Quotient Technology

-0.3
  Correlation Coefficient

Very good diversification

The 3 months correlation between MGO and Quotient is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding MGO Global Common and Quotient Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quotient Technology and MGO 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 MGO Global Common 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 MGO Global i.e., MGO Global and Quotient Technology go up and down completely randomly.

Pair Corralation between MGO Global and Quotient Technology

If you would invest  388.00  in Quotient Technology on August 30, 2024 and sell it today you would earn a total of  0.00  from holding Quotient Technology or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy4.35%
ValuesDaily Returns

MGO Global Common  vs.  Quotient Technology

 Performance 
       Timeline  
MGO Global Common 

Risk-Adjusted Performance

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Over the last 90 days MGO Global Common has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in December 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.
Quotient Technology 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Quotient Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Quotient Technology is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

MGO Global and Quotient Technology Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with MGO Global and Quotient Technology

The main advantage of trading using opposite MGO Global and Quotient Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGO Global 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.
The idea behind MGO Global Common and Quotient Technology 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 the Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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