Correlation Between Mirriad Advertising and Quotient Technology

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

By analyzing existing cross correlation between Mirriad Advertising plc and Quotient Technology, you can compare the effects of market volatilities on Mirriad Advertising 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 Mirriad Advertising with a short position of Quotient Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirriad Advertising and Quotient Technology.

Diversification Opportunities for Mirriad Advertising and Quotient Technology

-0.61

Correlation Coefficient

Mirriad Advertising  Quotient Technology

Excellent diversification

The 3 months correlation between Mirriad and Quotient is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Mirriad Advertising plc and Quotient Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quotient Technology and Mirriad Advertising 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 Mirriad Advertising plc 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 Mirriad Advertising i.e., Mirriad Advertising and Quotient Technology go up and down completely randomly.

Pair Corralation between Mirriad Advertising and Quotient Technology

If you would invest  388.00  in Quotient Technology on September 4, 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	Weak
Accuracy	1.56%
Values	Daily Returns

Mirriad Advertising plc  vs.  Quotient Technology

Mirriad Advertising plc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mirriad Advertising plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Quotient Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Quotient Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Quotient Technology is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Mirriad Advertising and Quotient Technology

The main advantage of trading using opposite Mirriad Advertising and Quotient Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirriad Advertising 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.

The idea behind Mirriad Advertising plc and Quotient Technology 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.