Correlation Between Quantum Software and Answear SA

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Can any of the company-specific risk be diversified away by investing in both Quantum Software and Answear SA 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 Software and Answear SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quantum Software SA and Answear SA, you can compare the effects of market volatilities on Quantum Software and Answear SA 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 Software with a short position of Answear SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quantum Software and Answear SA.

Diversification Opportunities for Quantum Software and Answear SA

QuantumAnswearDiversified AwayQuantumAnswearDiversified Away100%
-0.8
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Quantum and Answear is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Quantum Software SA and Answear SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Answear SA and Quantum Software 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 Software SA are associated (or correlated) with Answear SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Answear SA has no effect on the direction of Quantum Software i.e., Quantum Software and Answear SA go up and down completely randomly.

Pair Corralation between Quantum Software and Answear SA

Assuming the 90 days trading horizon Quantum Software SA is expected to generate 1.95 times more return on investment than Answear SA. However, Quantum Software is 1.95 times more volatile than Answear SA. It trades about 0.03 of its potential returns per unit of risk. Answear SA is currently generating about -0.03 per unit of risk. If you would invest  1,800  in Quantum Software SA on November 30, 2024 and sell it today you would earn a total of  10.00  from holding Quantum Software SA or generate 0.56% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Quantum Software SA  vs.  Answear SA

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -20-100102030
JavaScript chart by amCharts 3.21.15QNT ANR
       Timeline  
Quantum Software 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Quantum Software SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in March 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb181920212223
Answear SA 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Answear SA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Answear SA may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2526272829

Quantum Software and Answear SA Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.58-4.18-2.78-1.380.02121.272.543.815.08 0.030.040.050.060.07
JavaScript chart by amCharts 3.21.15QNT ANR
       Returns  

Pair Trading with Quantum Software and Answear SA

The main advantage of trading using opposite Quantum Software and Answear SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quantum Software position performs unexpectedly, Answear SA 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 Answear SA will offset losses from the drop in Answear SA's long position.
The idea behind Quantum Software SA and Answear 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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