Correlation Between Quad Graphics and SohuCom
Can any of the company-specific risk be diversified away by investing in both Quad Graphics and SohuCom 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 Quad Graphics and SohuCom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quad Graphics and SohuCom, you can compare the effects of market volatilities on Quad Graphics and SohuCom 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 Quad Graphics with a short position of SohuCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quad Graphics and SohuCom.
Diversification Opportunities for Quad Graphics and SohuCom
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Quad and SohuCom is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Quad Graphics and SohuCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SohuCom and Quad Graphics 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 Quad Graphics are associated (or correlated) with SohuCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SohuCom has no effect on the direction of Quad Graphics i.e., Quad Graphics and SohuCom go up and down completely randomly.
Pair Corralation between Quad Graphics and SohuCom
Given the investment horizon of 90 days Quad Graphics is expected to under-perform the SohuCom. In addition to that, Quad Graphics is 1.72 times more volatile than SohuCom. It trades about -0.13 of its total potential returns per unit of risk. SohuCom is currently generating about 0.29 per unit of volatility. If you would invest 985.00 in SohuCom on January 18, 2024 and sell it today you would earn a total of 93.00 from holding SohuCom or generate 9.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quad Graphics vs. SohuCom
Performance |
| Timeline |
| Quad Graphics |
| SohuCom |
Quad Graphics and SohuCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quad Graphics and SohuCom
The main advantage of trading using opposite Quad Graphics and SohuCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quad Graphics position performs unexpectedly, SohuCom 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 SohuCom will offset losses from the drop in SohuCom's long position.| Quad Graphics vs. Quanex Building Products | Quad Graphics vs. Janus International Group | Quad Graphics vs. Apogee Enterprises | Quad Graphics vs. Gibraltar Industries |
| SohuCom vs. Snail Class A | SohuCom vs. Playstudios | SohuCom vs. Playtika Holding Corp | SohuCom vs. Doubledown InteractiveCo |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities |