Correlation Between Sequans Communications and QuickLogic
Can any of the company-specific risk be diversified away by investing in both Sequans Communications and QuickLogic 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 Sequans Communications and QuickLogic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sequans Communications SA and QuickLogic, you can compare the effects of market volatilities on Sequans Communications and QuickLogic 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 Sequans Communications with a short position of QuickLogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sequans Communications and QuickLogic.
Diversification Opportunities for Sequans Communications and QuickLogic
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sequans and QuickLogic is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Sequans Communications SA and QuickLogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QuickLogic and Sequans Communications 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 Sequans Communications SA are associated (or correlated) with QuickLogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QuickLogic has no effect on the direction of Sequans Communications i.e., Sequans Communications and QuickLogic go up and down completely randomly.
Pair Corralation between Sequans Communications and QuickLogic
Given the investment horizon of 90 days Sequans Communications SA is expected to generate 2.3 times more return on investment than QuickLogic. However, Sequans Communications is 2.3 times more volatile than QuickLogic. It trades about 0.01 of its potential returns per unit of risk. QuickLogic is currently generating about 0.0 per unit of risk. If you would invest 725.00 in Sequans Communications SA on September 1, 2024 and sell it today you would lose (427.00) from holding Sequans Communications SA or give up 58.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sequans Communications SA vs. QuickLogic
Performance |
| Timeline |
| Sequans Communications |
| QuickLogic |
Sequans Communications and QuickLogic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sequans Communications and QuickLogic
The main advantage of trading using opposite Sequans Communications and QuickLogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sequans Communications position performs unexpectedly, QuickLogic 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 QuickLogic will offset losses from the drop in QuickLogic's long position.| Sequans Communications vs. QuickLogic | Sequans Communications vs. Power Integrations | Sequans Communications vs. Silicon Laboratories | Sequans Communications vs. FormFactor |
| QuickLogic vs. Pixelworks | QuickLogic vs. AXT Inc | QuickLogic vs. Power Integrations | QuickLogic vs. Lattice Semiconductor |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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