Correlation Between Dun Bradstreet and Quad Graphics
Can any of the company-specific risk be diversified away by investing in both Dun Bradstreet and Quad Graphics 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 Dun Bradstreet and Quad Graphics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dun Bradstreet Holdings and Quad Graphics, you can compare the effects of market volatilities on Dun Bradstreet and Quad Graphics 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 Dun Bradstreet with a short position of Quad Graphics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dun Bradstreet and Quad Graphics.
Diversification Opportunities for Dun Bradstreet and Quad Graphics
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dun and Quad is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Dun Bradstreet Holdings and Quad Graphics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quad Graphics and Dun Bradstreet 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 Dun Bradstreet Holdings are associated (or correlated) with Quad Graphics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quad Graphics has no effect on the direction of Dun Bradstreet i.e., Dun Bradstreet and Quad Graphics go up and down completely randomly.
Pair Corralation between Dun Bradstreet and Quad Graphics
Considering the 90-day investment horizon Dun Bradstreet Holdings is expected to generate 0.64 times more return on investment than Quad Graphics. However, Dun Bradstreet Holdings is 1.56 times less risky than Quad Graphics. It trades about -0.14 of its potential returns per unit of risk. Quad Graphics is currently generating about -0.3 per unit of risk. If you would invest 960.00 in Dun Bradstreet Holdings on January 24, 2024 and sell it today you would lose (41.00) from holding Dun Bradstreet Holdings or give up 4.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dun Bradstreet Holdings vs. Quad Graphics
Performance |
| Timeline |
| Dun Bradstreet Holdings |
| Quad Graphics |
Dun Bradstreet and Quad Graphics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dun Bradstreet and Quad Graphics
The main advantage of trading using opposite Dun Bradstreet and Quad Graphics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dun Bradstreet position performs unexpectedly, Quad Graphics 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 Quad Graphics will offset losses from the drop in Quad Graphics' long position.| Dun Bradstreet vs. FactSet Research Systems | Dun Bradstreet vs. Moodys | Dun Bradstreet vs. MSCI Inc | Dun Bradstreet vs. Intercontinental Exchange |
| Quad Graphics vs. Maximus | Quad Graphics vs. CBIZ Inc | Quad Graphics vs. First Advantage Corp | Quad Graphics vs. Network 1 Technologies |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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