Correlation Between Quisitive Technology and Capgemini
Can any of the company-specific risk be diversified away by investing in both Quisitive Technology and Capgemini 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 Quisitive Technology and Capgemini into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quisitive Technology Solutions and Capgemini SE, you can compare the effects of market volatilities on Quisitive Technology and Capgemini 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 Quisitive Technology with a short position of Capgemini. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quisitive Technology and Capgemini.
Diversification Opportunities for Quisitive Technology and Capgemini
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Quisitive and Capgemini is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Quisitive Technology Solutions and Capgemini SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capgemini SE and Quisitive 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 Quisitive Technology Solutions are associated (or correlated) with Capgemini. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capgemini SE has no effect on the direction of Quisitive Technology i.e., Quisitive Technology and Capgemini go up and down completely randomly.
Pair Corralation between Quisitive Technology and Capgemini
Assuming the 90 days horizon Quisitive Technology Solutions is expected to generate 1.14 times more return on investment than Capgemini. However, Quisitive Technology is 1.14 times more volatile than Capgemini SE. It trades about -0.04 of its potential returns per unit of risk. Capgemini SE is currently generating about -0.14 per unit of risk. If you would invest 28.00 in Quisitive Technology Solutions on August 31, 2024 and sell it today you would lose (3.00) from holding Quisitive Technology Solutions or give up 10.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quisitive Technology Solutions vs. Capgemini SE
Performance |
| Timeline |
| Quisitive Technology |
| Capgemini SE |
Quisitive Technology and Capgemini Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quisitive Technology and Capgemini
The main advantage of trading using opposite Quisitive Technology and Capgemini positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quisitive Technology position performs unexpectedly, Capgemini 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 Capgemini will offset losses from the drop in Capgemini's long position.| Quisitive Technology vs. Atos SE | Quisitive Technology vs. Deveron Corp | Quisitive Technology vs. Appen Limited | Quisitive Technology vs. Atos Origin SA |
| Capgemini vs. CSE Global Limited | Capgemini vs. Deveron Corp | Capgemini vs. Appen Limited | Capgemini vs. Appen Limited |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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