Correlation Between QuinStreet and Cardlytics

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

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

Diversification Opportunities for QuinStreet and Cardlytics

0.54

Correlation Coefficient

QuinStreet  Cardlytics

Very weak diversification

The 3 months correlation between QuinStreet and Cardlytics is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding QuinStreet and Cardlytics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardlytics and QuinStreet 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 QuinStreet are associated (or correlated) with Cardlytics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardlytics has no effect on the direction of QuinStreet i.e., QuinStreet and Cardlytics go up and down completely randomly.

Pair Corralation between QuinStreet and Cardlytics

Given the investment horizon of 90 days QuinStreet is expected to generate 0.54 times more return on investment than Cardlytics. However, QuinStreet is 1.85 times less risky than Cardlytics. It trades about 0.08 of its potential returns per unit of risk. Cardlytics is currently generating about 0.03 per unit of risk. If you would invest  1,974  in QuinStreet on September 17, 2024 and sell it today you would earn a total of  259.00  from holding QuinStreet or generate 13.12% return on investment over 90 days.

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

QuinStreet  vs.  Cardlytics

QuinStreet

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in QuinStreet are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, QuinStreet unveiled solid returns over the last few months and may actually be approaching a breakup point.

Cardlytics

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cardlytics are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating essential indicators, Cardlytics may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with QuinStreet and Cardlytics

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

The idea behind QuinStreet and Cardlytics 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.