Correlation Between QuinStreet and PHINIA

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

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

Diversification Opportunities for QuinStreet and PHINIA

0.66

Correlation Coefficient

QuinStreet  PHINIA

Poor diversification

The 3 months correlation between QuinStreet and PHINIA is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding QuinStreet and PHINIA Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHINIA Inc 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 PHINIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHINIA Inc has no effect on the direction of QuinStreet i.e., QuinStreet and PHINIA go up and down completely randomly.

Pair Corralation between QuinStreet and PHINIA

Given the investment horizon of 90 days QuinStreet is expected to under-perform the PHINIA. In addition to that, QuinStreet is 1.32 times more volatile than PHINIA Inc. It trades about -0.08 of its total potential returns per unit of risk. PHINIA Inc is currently generating about -0.04 per unit of volatility. If you would invest  4,737  in PHINIA Inc on December 21, 2024 and sell it today you would lose (339.00) from holding PHINIA Inc or give up 7.16% of portfolio value over 90 days.

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

QuinStreet  vs.  PHINIA Inc

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.

PHINIA Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days PHINIA Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, PHINIA is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with QuinStreet and PHINIA

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

The idea behind QuinStreet and PHINIA 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.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.