Correlation Between Stagwell and QuinStreet
Can any of the company-specific risk be diversified away by investing in both Stagwell 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 Stagwell and QuinStreet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stagwell and QuinStreet, you can compare the effects of market volatilities on Stagwell 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 Stagwell with a short position of QuinStreet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stagwell and QuinStreet.
Diversification Opportunities for Stagwell and QuinStreet
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Stagwell and QuinStreet is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Stagwell and QuinStreet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QuinStreet and Stagwell 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 Stagwell 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 Stagwell i.e., Stagwell and QuinStreet go up and down completely randomly.
Pair Corralation between Stagwell and QuinStreet
Given the investment horizon of 90 days Stagwell is expected to generate 0.69 times more return on investment than QuinStreet. However, Stagwell is 1.45 times less risky than QuinStreet. It trades about 0.38 of its potential returns per unit of risk. QuinStreet is currently generating about 0.2 per unit of risk. If you would invest 635.00 in Stagwell on August 30, 2024 and sell it today you would earn a total of 156.00 from holding Stagwell or generate 24.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Stagwell vs. QuinStreet
Performance |
| Timeline |
| Stagwell |
| QuinStreet |
Stagwell and QuinStreet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stagwell and QuinStreet
The main advantage of trading using opposite Stagwell and QuinStreet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stagwell 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.| Stagwell vs. Innovid Corp | Stagwell vs. Interpublic Group of | Stagwell vs. Cimpress NV | Stagwell vs. Criteo Sa |
| QuinStreet vs. TechTarget | 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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