Correlation Between Clear Channel and Quotient Technology

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

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

Diversification Opportunities for Clear Channel and Quotient Technology

0.0

Correlation Coefficient

Clear Channel  Quotient Technology

Pay attention - limited upside

The 3 months correlation between Clear and Quotient is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Clear Channel Outdoor and Quotient Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quotient Technology and Clear Channel 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 Clear Channel Outdoor 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 Clear Channel i.e., Clear Channel and Quotient Technology go up and down completely randomly.

Pair Corralation between Clear Channel and Quotient Technology

If you would invest (100.00) in Quotient Technology on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Quotient Technology or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Clear Channel Outdoor  vs.  Quotient Technology

Clear Channel Outdoor

Risk-Adjusted Performance

Very Weak

Over the last 90 days Clear Channel Outdoor has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Quotient Technology

Risk-Adjusted Performance

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 Clear Channel and Quotient Technology

The main advantage of trading using opposite Clear Channel and Quotient Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clear Channel 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 Clear Channel Outdoor 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.