Correlation Between QuickLogic and Sequans Communications
Can any of the company-specific risk be diversified away by investing in both QuickLogic and Sequans Communications 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 QuickLogic and Sequans Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between QuickLogic and Sequans Communications SA, you can compare the effects of market volatilities on QuickLogic and Sequans Communications 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 QuickLogic with a short position of Sequans Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of QuickLogic and Sequans Communications.
Diversification Opportunities for QuickLogic and Sequans Communications
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between QuickLogic and Sequans is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding QuickLogic and Sequans Communications SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sequans Communications and QuickLogic 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 QuickLogic are associated (or correlated) with Sequans Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sequans Communications has no effect on the direction of QuickLogic i.e., QuickLogic and Sequans Communications go up and down completely randomly.
Pair Corralation between QuickLogic and Sequans Communications
Given the investment horizon of 90 days QuickLogic is expected to generate 0.5 times more return on investment than Sequans Communications. However, QuickLogic is 2.01 times less risky than Sequans Communications. It trades about 0.04 of its potential returns per unit of risk. Sequans Communications SA is currently generating about 0.01 per unit of risk. If you would invest 525.00 in QuickLogic on September 1, 2024 and sell it today you would earn a total of 238.00 from holding QuickLogic or generate 45.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
QuickLogic vs. Sequans Communications SA
Performance |
| Timeline |
| QuickLogic |
| Sequans Communications |
QuickLogic and Sequans Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QuickLogic and Sequans Communications
The main advantage of trading using opposite QuickLogic and Sequans Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QuickLogic position performs unexpectedly, Sequans Communications 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 Sequans Communications will offset losses from the drop in Sequans Communications' long position.| QuickLogic vs. Pixelworks | QuickLogic vs. AXT Inc | QuickLogic vs. Power Integrations | QuickLogic vs. Lattice Semiconductor |
| Sequans Communications vs. QuickLogic | Sequans Communications vs. Power Integrations | Sequans Communications vs. Silicon Laboratories | Sequans Communications vs. FormFactor |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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