Correlation Between Spinnova and Qt Group
Can any of the company-specific risk be diversified away by investing in both Spinnova and Qt Group 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 Spinnova and Qt Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spinnova Oy and Qt Group Oyj, you can compare the effects of market volatilities on Spinnova and Qt Group 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 Spinnova with a short position of Qt Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spinnova and Qt Group.
Diversification Opportunities for Spinnova and Qt Group
Very good diversification
The 3 months correlation between Spinnova and QTCOM is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Spinnova Oy and Qt Group Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qt Group Oyj and Spinnova 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 Spinnova Oy are associated (or correlated) with Qt Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qt Group Oyj has no effect on the direction of Spinnova i.e., Spinnova and Qt Group go up and down completely randomly.
Pair Corralation between Spinnova and Qt Group
Assuming the 90 days trading horizon Spinnova Oy is expected to under-perform the Qt Group. In addition to that, Spinnova is 1.48 times more volatile than Qt Group Oyj. It trades about -0.12 of its total potential returns per unit of risk. Qt Group Oyj is currently generating about 0.01 per unit of volatility. If you would invest 8,104 in Qt Group Oyj on December 5, 2024 and sell it today you would lose (24.00) from holding Qt Group Oyj or give up 0.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spinnova Oy vs. Qt Group Oyj
Performance |
| Timeline |
| Spinnova Oy |
| Qt Group Oyj |
Spinnova and Qt Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spinnova and Qt Group
The main advantage of trading using opposite Spinnova and Qt Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spinnova position performs unexpectedly, Qt Group 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 Qt Group will offset losses from the drop in Qt Group's long position.| Spinnova vs. Qt Group 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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