Correlation Between QYOU Media and Celtic Plc

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

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

Diversification Opportunities for QYOU Media and Celtic Plc

0.09

Correlation Coefficient

QYOU Media  Celtic Plc

Significant diversification

The 3 months correlation between QYOU and Celtic is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding QYOU Media and Celtic plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celtic plc and QYOU Media 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 QYOU Media are associated (or correlated) with Celtic Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celtic plc has no effect on the direction of QYOU Media i.e., QYOU Media and Celtic Plc go up and down completely randomly.

Pair Corralation between QYOU Media and Celtic Plc

Assuming the 90 days horizon QYOU Media is expected to under-perform the Celtic Plc. In addition to that, QYOU Media is 2.09 times more volatile than Celtic plc. It trades about -0.14 of its total potential returns per unit of risk. Celtic plc is currently generating about -0.09 per unit of volatility. If you would invest  210.00  in Celtic plc on December 19, 2024 and sell it today you would lose (14.00) from holding Celtic plc or give up 6.67% of portfolio value over 90 days.

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

QYOU Media  vs.  Celtic plc

QYOU Media

Risk-Adjusted Performance

Very Weak

Over the last 90 days QYOU Media has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, QYOU Media is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Celtic plc

Risk-Adjusted Performance

Weak

Over the last 90 days Celtic plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Celtic Plc is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with QYOU Media and Celtic Plc

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

The idea behind QYOU Media and Celtic plc 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.