Correlation Between Fluent and QuickLogic
Can any of the company-specific risk be diversified away by investing in both Fluent and QuickLogic 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 Fluent and QuickLogic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fluent Inc and QuickLogic, you can compare the effects of market volatilities on Fluent and QuickLogic 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 Fluent with a short position of QuickLogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluent and QuickLogic.
Diversification Opportunities for Fluent and QuickLogic
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fluent and QuickLogic is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Fluent Inc and QuickLogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QuickLogic and Fluent 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 Fluent Inc are associated (or correlated) with QuickLogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QuickLogic has no effect on the direction of Fluent i.e., Fluent and QuickLogic go up and down completely randomly.
Pair Corralation between Fluent and QuickLogic
Given the investment horizon of 90 days Fluent Inc is expected to under-perform the QuickLogic. In addition to that, Fluent is 1.09 times more volatile than QuickLogic. It trades about -0.05 of its total potential returns per unit of risk. QuickLogic is currently generating about 0.05 per unit of volatility. If you would invest 742.00 in QuickLogic on September 1, 2024 and sell it today you would earn a total of 21.00 from holding QuickLogic or generate 2.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fluent Inc vs. QuickLogic
Performance |
| Timeline |
| Fluent Inc |
| QuickLogic |
Fluent and QuickLogic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fluent and QuickLogic
The main advantage of trading using opposite Fluent and QuickLogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluent position performs unexpectedly, QuickLogic 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 QuickLogic will offset losses from the drop in QuickLogic's long position.The idea behind Fluent Inc and QuickLogic 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.| QuickLogic vs. Pixelworks | QuickLogic vs. AXT Inc | QuickLogic vs. Power Integrations | QuickLogic vs. Lattice Semiconductor |
Check out your portfolio center.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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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