Correlation Between Quantum EMotion and Sanlam
Can any of the company-specific risk be diversified away by investing in both Quantum EMotion and Sanlam 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 EMotion and Sanlam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quantum eMotion and Sanlam Ltd PK, you can compare the effects of market volatilities on Quantum EMotion and Sanlam 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 EMotion with a short position of Sanlam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quantum EMotion and Sanlam.
Diversification Opportunities for Quantum EMotion and Sanlam
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Quantum and Sanlam is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Quantum eMotion and Sanlam Ltd PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanlam Ltd PK and Quantum EMotion 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 eMotion are associated (or correlated) with Sanlam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanlam Ltd PK has no effect on the direction of Quantum EMotion i.e., Quantum EMotion and Sanlam go up and down completely randomly.
Pair Corralation between Quantum EMotion and Sanlam
Assuming the 90 days horizon Quantum eMotion is expected to generate 9.83 times more return on investment than Sanlam. However, Quantum EMotion is 9.83 times more volatile than Sanlam Ltd PK. It trades about 0.22 of its potential returns per unit of risk. Sanlam Ltd PK is currently generating about -0.05 per unit of risk. If you would invest 38.00 in Quantum eMotion on October 22, 2024 and sell it today you would earn a total of 25.00 from holding Quantum eMotion or generate 65.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Quantum eMotion vs. Sanlam Ltd PK
Performance |
| Timeline |
| Quantum eMotion |
| Sanlam Ltd PK |
Quantum EMotion and Sanlam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quantum EMotion and Sanlam
The main advantage of trading using opposite Quantum EMotion and Sanlam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quantum EMotion position performs unexpectedly, Sanlam 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 Sanlam will offset losses from the drop in Sanlam's long position.| Quantum EMotion vs. QuickLogic | Quantum EMotion vs. Sequans Communications SA | Quantum EMotion vs. Semtech | Quantum EMotion vs. Valens |
| Sanlam vs. Ping An Insurance | Sanlam vs. CNO Financial Group | Sanlam vs. Genworth Financial | Sanlam vs. MetLife Preferred Stock |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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