Correlation Between QuinStreet and GENERAL

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

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

Diversification Opportunities for QuinStreet and GENERAL

0.45

Correlation Coefficient

QuinStreet  GENERAL

Very weak diversification

The 3 months correlation between QuinStreet and GENERAL is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding QuinStreet and GENERAL ELEC CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL ELEC CAP 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL ELEC CAP has no effect on the direction of QuinStreet i.e., QuinStreet and GENERAL go up and down completely randomly.

Pair Corralation between QuinStreet and GENERAL

Given the investment horizon of 90 days QuinStreet is expected to under-perform the GENERAL. In addition to that, QuinStreet is 2.28 times more volatile than GENERAL ELEC CAP. It trades about -0.14 of its total potential returns per unit of risk. GENERAL ELEC CAP is currently generating about 0.08 per unit of volatility. If you would invest  9,918  in GENERAL ELEC CAP on December 25, 2024 and sell it today you would earn a total of  133.00  from holding GENERAL ELEC CAP or generate 1.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	23.73%
Values	Daily Returns

QuinStreet  vs.  GENERAL ELEC CAP

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.

GENERAL ELEC CAP

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in GENERAL ELEC CAP are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, GENERAL may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with QuinStreet and GENERAL

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

The idea behind QuinStreet and GENERAL ELEC CAP 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.