Correlation Between Questor Technology and CNJ Capital
Can any of the company-specific risk be diversified away by investing in both Questor Technology and CNJ Capital 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 Questor Technology and CNJ Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Questor Technology and CNJ Capital Investments, you can compare the effects of market volatilities on Questor Technology and CNJ Capital 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 Questor Technology with a short position of CNJ Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Questor Technology and CNJ Capital.
Diversification Opportunities for Questor Technology and CNJ Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Questor and CNJ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Questor Technology and CNJ Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNJ Capital Investments and Questor Technology 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 Questor Technology are associated (or correlated) with CNJ Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNJ Capital Investments has no effect on the direction of Questor Technology i.e., Questor Technology and CNJ Capital go up and down completely randomly.
Pair Corralation between Questor Technology and CNJ Capital
Assuming the 90 days horizon Questor Technology is expected to under-perform the CNJ Capital. In addition to that, Questor Technology is 1.84 times more volatile than CNJ Capital Investments. It trades about -0.08 of its total potential returns per unit of risk. CNJ Capital Investments is currently generating about -0.02 per unit of volatility. If you would invest 52.00 in CNJ Capital Investments on August 24, 2024 and sell it today you would lose (6.00) from holding CNJ Capital Investments or give up 11.54% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Questor Technology vs. CNJ Capital Investments
Performance |
Timeline |
Questor Technology |
CNJ Capital Investments |
Questor Technology and CNJ Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Questor Technology and CNJ Capital
The main advantage of trading using opposite Questor Technology and CNJ Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Questor Technology position performs unexpectedly, CNJ Capital 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 CNJ Capital will offset losses from the drop in CNJ Capital's long position.The idea behind Questor Technology and CNJ Capital Investments 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.CNJ Capital vs. Waste Connections | CNJ Capital vs. CCL Industries | CNJ Capital vs. iShares Canadian HYBrid | CNJ Capital vs. Solar Alliance Energy |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories |