Correlation Between Quarterhill and Stingray
Can any of the company-specific risk be diversified away by investing in both Quarterhill and Stingray 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 Quarterhill and Stingray into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quarterhill and Stingray Group, you can compare the effects of market volatilities on Quarterhill and Stingray 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 Quarterhill with a short position of Stingray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quarterhill and Stingray.
Diversification Opportunities for Quarterhill and Stingray
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Quarterhill and Stingray is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Quarterhill and Stingray Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stingray Group and Quarterhill 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 Quarterhill are associated (or correlated) with Stingray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stingray Group has no effect on the direction of Quarterhill i.e., Quarterhill and Stingray go up and down completely randomly.
Pair Corralation between Quarterhill and Stingray
Assuming the 90 days trading horizon Quarterhill is expected to generate 3.07 times less return on investment than Stingray. In addition to that, Quarterhill is 1.15 times more volatile than Stingray Group. It trades about 0.02 of its total potential returns per unit of risk. Stingray Group is currently generating about 0.06 per unit of volatility. If you would invest 703.00 in Stingray Group on August 29, 2024 and sell it today you would earn a total of 94.00 from holding Stingray Group or generate 13.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quarterhill vs. Stingray Group
Performance |
| Timeline |
| Quarterhill |
| Stingray Group |
Quarterhill and Stingray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quarterhill and Stingray
The main advantage of trading using opposite Quarterhill and Stingray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quarterhill position performs unexpectedly, Stingray 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 Stingray will offset losses from the drop in Stingray's long position.| Quarterhill vs. Berkshire Hathaway CDR | Quarterhill vs. JPMorgan Chase Co | Quarterhill vs. Bank of America | Quarterhill vs. Alphabet Inc CDR |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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