Correlation Between Quotient Technology and Advantage Solutions

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

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

Diversification Opportunities for Quotient Technology and Advantage Solutions

0.0

Correlation Coefficient

Quotient Technology  Advantage Solutions

Pay attention - limited upside

The 3 months correlation between Quotient and Advantage is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Quotient Technology and Advantage Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advantage Solutions and Quotient Technology 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 Quotient Technology are associated (or correlated) with Advantage Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advantage Solutions has no effect on the direction of Quotient Technology i.e., Quotient Technology and Advantage Solutions go up and down completely randomly.

Pair Corralation between Quotient Technology and Advantage Solutions

If you would invest (100.00) in Quotient Technology on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Quotient Technology or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Quotient Technology  vs.  Advantage Solutions

Quotient Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Quotient Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Quotient Technology is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Advantage Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days Advantage Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Quotient Technology and Advantage Solutions

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

The idea behind Quotient Technology and Advantage Solutions 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.