Correlation Between Quantum and Celestica
Can any of the company-specific risk be diversified away by investing in both Quantum and Celestica 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 Quantum and Celestica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quantum and Celestica, you can compare the effects of market volatilities on Quantum and Celestica 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 Quantum with a short position of Celestica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quantum and Celestica.
Diversification Opportunities for Quantum and Celestica
Good diversification
The 3 months correlation between Quantum and Celestica is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Quantum and Celestica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celestica and Quantum 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 Quantum are associated (or correlated) with Celestica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celestica has no effect on the direction of Quantum i.e., Quantum and Celestica go up and down completely randomly.
Pair Corralation between Quantum and Celestica
Given the investment horizon of 90 days Quantum is expected to under-perform the Celestica. In addition to that, Quantum is 2.0 times more volatile than Celestica. It trades about -0.24 of its total potential returns per unit of risk. Celestica is currently generating about -0.42 per unit of volatility. If you would invest 13,198 in Celestica on December 6, 2024 and sell it today you would lose (5,036) from holding Celestica or give up 38.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quantum vs. Celestica
Performance |
| Timeline |
| Quantum |
| Celestica |
Quantum and Celestica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quantum and Celestica
The main advantage of trading using opposite Quantum and Celestica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quantum position performs unexpectedly, Celestica 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 Celestica will offset losses from the drop in Celestica's long position.| Quantum vs. Rigetti Computing | Quantum vs. D Wave Quantum | Quantum vs. IONQ Inc | Quantum vs. Desktop Metal |
| Celestica vs. Plexus Corp | Celestica vs. Benchmark Electronics | Celestica vs. Flex | Celestica vs. Jabil Circuit |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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