Correlation Between QMMM Holdings and Mirriad Advertising

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

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

Diversification Opportunities for QMMM Holdings and Mirriad Advertising

0.78

Correlation Coefficient

QMMM Holdings  Mirriad Advertising

Poor diversification

The 3 months correlation between QMMM and Mirriad is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding QMMM Holdings Limited and Mirriad Advertising plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirriad Advertising plc and QMMM Holdings 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 QMMM Holdings Limited are associated (or correlated) with Mirriad Advertising. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirriad Advertising plc has no effect on the direction of QMMM Holdings i.e., QMMM Holdings and Mirriad Advertising go up and down completely randomly.

Pair Corralation between QMMM Holdings and Mirriad Advertising

If you would invest  75.00  in QMMM Holdings Limited on October 26, 2024 and sell it today you would lose (4.00) from holding QMMM Holdings Limited or give up 5.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	85.71%
Values	Daily Returns

QMMM Holdings Limited  vs.  Mirriad Advertising plc

QMMM Holdings Limited

Risk-Adjusted Performance

0 of 100

Very Weak

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

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 weak performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with QMMM Holdings and Mirriad Advertising

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

The idea behind QMMM Holdings Limited and Mirriad Advertising plc 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.