Correlation Between Quad Graphics and Civeo Corp

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

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

Diversification Opportunities for Quad Graphics and Civeo Corp

0.13

Correlation Coefficient

Quad Graphics  Civeo Corp

Average diversification

The 3 months correlation between Quad and Civeo is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Quad Graphics and Civeo Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Civeo Corp and Quad Graphics 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 Quad Graphics are associated (or correlated) with Civeo Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Civeo Corp has no effect on the direction of Quad Graphics i.e., Quad Graphics and Civeo Corp go up and down completely randomly.

Pair Corralation between Quad Graphics and Civeo Corp

Given the investment horizon of 90 days Quad Graphics is expected to under-perform the Civeo Corp. In addition to that, Quad Graphics is 1.42 times more volatile than Civeo Corp. It trades about -0.08 of its total potential returns per unit of risk. Civeo Corp is currently generating about 0.04 per unit of volatility. If you would invest  2,149  in Civeo Corp on December 20, 2024 and sell it today you would earn a total of  103.00  from holding Civeo Corp or generate 4.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Quad Graphics  vs.  Civeo Corp

Quad Graphics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Quad Graphics 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 rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Civeo Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Civeo Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Civeo Corp may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Quad Graphics and Civeo Corp

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

The idea behind Quad Graphics and Civeo Corp 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 Global Correlations module to find global opportunities by holding instruments from different markets.