Correlation Between BigBen Interactive and Quadient

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

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

Diversification Opportunities for BigBen Interactive and Quadient

-0.31

Correlation Coefficient

BigBen Interactive  Quadient

Very good diversification

The 3 months correlation between BigBen and Quadient is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding BigBen Interactive and Quadient SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quadient SA and BigBen Interactive 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 BigBen Interactive are associated (or correlated) with Quadient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quadient SA has no effect on the direction of BigBen Interactive i.e., BigBen Interactive and Quadient go up and down completely randomly.

Pair Corralation between BigBen Interactive and Quadient

Assuming the 90 days trading horizon BigBen Interactive is expected to generate 2.34 times more return on investment than Quadient. However, BigBen Interactive is 2.34 times more volatile than Quadient SA. It trades about 0.17 of its potential returns per unit of risk. Quadient SA is currently generating about 0.01 per unit of risk. If you would invest  90.00  in BigBen Interactive on April 25, 2025 and sell it today you would earn a total of  40.00  from holding BigBen Interactive or generate 44.44% return on investment over 90 days.

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

BigBen Interactive  vs.  Quadient SA

BigBen Interactive

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BigBen Interactive are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, BigBen Interactive sustained solid returns over the last few months and may actually be approaching a breakup point.

Quadient SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Quadient SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Quadient is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with BigBen Interactive and Quadient

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

The idea behind BigBen Interactive and Quadient SA 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.