Correlation Between Quotient Technology and Kidoz

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

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

Diversification Opportunities for Quotient Technology and Kidoz

0.29

Correlation Coefficient

Quotient Technology  Kidoz

Modest diversification

The 3 months correlation between Quotient and Kidoz is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Quotient Technology and Kidoz Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kidoz Inc and Quotient Technology 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 Quotient Technology are associated (or correlated) with Kidoz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kidoz Inc has no effect on the direction of Quotient Technology i.e., Quotient Technology and Kidoz go up and down completely randomly.

Pair Corralation between Quotient Technology and Kidoz

If you would invest  9.00  in Kidoz Inc on September 13, 2024 and sell it today you would earn a total of  1.00  from holding Kidoz Inc or generate 11.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	1.59%
Values	Daily Returns

Quotient Technology  vs.  Kidoz Inc

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.

Kidoz Inc

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kidoz Inc are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Kidoz reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Quotient Technology and Kidoz

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

The idea behind Quotient Technology and Kidoz Inc 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.

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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.