Correlation Between MGO Global and Quotient Technology
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 Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
MGO Global Common vs. Quotient Technology
Performance |
| Timeline |
| MGO Global Common |
| Quotient Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
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.| MGO Global vs. Baosheng Media Group | MGO Global vs. National CineMedia | MGO Global vs. Impact Fusion International | MGO Global vs. ZW Data Action |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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