Correlation Between Qt Group and CapMan Oyj
Can any of the company-specific risk be diversified away by investing in both Qt Group and CapMan Oyj 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 Qt Group and CapMan Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qt Group Oyj and CapMan Oyj B, you can compare the effects of market volatilities on Qt Group and CapMan Oyj 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 Qt Group with a short position of CapMan Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qt Group and CapMan Oyj.
Diversification Opportunities for Qt Group and CapMan Oyj
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between QTCOM and CapMan is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Qt Group Oyj and CapMan Oyj B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapMan Oyj B and Qt Group 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 Qt Group Oyj are associated (or correlated) with CapMan Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CapMan Oyj B has no effect on the direction of Qt Group i.e., Qt Group and CapMan Oyj go up and down completely randomly.
Pair Corralation between Qt Group and CapMan Oyj
Assuming the 90 days trading horizon Qt Group Oyj is expected to generate 1.7 times more return on investment than CapMan Oyj. However, Qt Group is 1.7 times more volatile than CapMan Oyj B. It trades about 0.03 of its potential returns per unit of risk. CapMan Oyj B is currently generating about -0.02 per unit of risk. If you would invest 6,546 in Qt Group Oyj on December 7, 2024 and sell it today you would earn a total of 1,904 from holding Qt Group Oyj or generate 29.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qt Group Oyj vs. CapMan Oyj B
Performance |
| Timeline |
| Qt Group Oyj |
| CapMan Oyj B |
Qt Group and CapMan Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qt Group and CapMan Oyj
The main advantage of trading using opposite Qt Group and CapMan Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qt Group position performs unexpectedly, CapMan Oyj 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 CapMan Oyj will offset losses from the drop in CapMan Oyj's long position.| Qt Group vs. Harvia Oyj | ||
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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