Correlation Between QuinStreet and Global E

Can any of the company-specific risk be diversified away by investing in both QuinStreet and Global E 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 QuinStreet and Global E into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between QuinStreet and Global E Online, you can compare the effects of market volatilities on QuinStreet and Global E 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 QuinStreet with a short position of Global E. Check out your portfolio center. Please also check ongoing floating volatility patterns of QuinStreet and Global E.

Diversification Opportunities for QuinStreet and Global E

-0.39

Correlation Coefficient

QuinStreet  Global E

Very good diversification

The 3 months correlation between QuinStreet and Global is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding QuinStreet and Global E Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global E Online and QuinStreet 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 QuinStreet are associated (or correlated) with Global E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global E Online has no effect on the direction of QuinStreet i.e., QuinStreet and Global E go up and down completely randomly.

Pair Corralation between QuinStreet and Global E

Given the investment horizon of 90 days QuinStreet is expected to generate 1.12 times less return on investment than Global E. But when comparing it to its historical volatility, QuinStreet is 1.42 times less risky than Global E. It trades about 0.05 of its potential returns per unit of risk. Global E Online is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  2,263  in Global E Online on January 25, 2024 and sell it today you would earn a total of  1,130  from holding Global E Online or generate 49.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

QuinStreet  vs.  Global E Online

QuinStreet

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in QuinStreet are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, QuinStreet unveiled solid returns over the last few months and may actually be approaching a breakup point.

Global E Online

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Global E Online has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, Global E is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with QuinStreet and Global E

The main advantage of trading using opposite QuinStreet and Global E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QuinStreet position performs unexpectedly, Global E 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 Global E will offset losses from the drop in Global E's long position.

The idea behind QuinStreet and Global E Online 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.

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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.