Correlation Between Phibro Animal and QuinStreet

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

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

Diversification Opportunities for Phibro Animal and QuinStreet

0.03

Correlation Coefficient

Phibro Animal  QuinStreet

Significant diversification

The 3 months correlation between Phibro and QuinStreet is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Phibro Animal Health and QuinStreet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QuinStreet and Phibro Animal 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 Phibro Animal Health are associated (or correlated) with QuinStreet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QuinStreet has no effect on the direction of Phibro Animal i.e., Phibro Animal and QuinStreet go up and down completely randomly.

Pair Corralation between Phibro Animal and QuinStreet

Given the investment horizon of 90 days Phibro Animal Health is expected to generate 1.19 times more return on investment than QuinStreet. However, Phibro Animal is 1.19 times more volatile than QuinStreet. It trades about 0.03 of its potential returns per unit of risk. QuinStreet is currently generating about -0.15 per unit of risk. If you would invest  2,087  in Phibro Animal Health on December 30, 2024 and sell it today you would earn a total of  59.00  from holding Phibro Animal Health or generate 2.83% return on investment over 90 days.

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

Phibro Animal Health  vs.  QuinStreet

Phibro Animal Health

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Phibro Animal Health are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical indicators, Phibro Animal is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

QuinStreet

Risk-Adjusted Performance

Very Weak

Over the last 90 days QuinStreet has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Phibro Animal and QuinStreet

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

The idea behind Phibro Animal Health and QuinStreet 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.