Correlation Between QUEEN S and Broadwind

Can any of the company-specific risk be diversified away by investing in both QUEEN S and Broadwind 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 QUEEN S and Broadwind into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between QUEEN S ROAD and Broadwind, you can compare the effects of market volatilities on QUEEN S and Broadwind 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 QUEEN S with a short position of Broadwind. Check out your portfolio center. Please also check ongoing floating volatility patterns of QUEEN S and Broadwind.

Diversification Opportunities for QUEEN S and Broadwind

-0.3

Correlation Coefficient

QUEEN S  Broadwind

Very good diversification

The 3 months correlation between QUEEN and Broadwind is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding QUEEN S ROAD and Broadwind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broadwind and QUEEN S 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 QUEEN S ROAD are associated (or correlated) with Broadwind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broadwind has no effect on the direction of QUEEN S i.e., QUEEN S and Broadwind go up and down completely randomly.

Pair Corralation between QUEEN S and Broadwind

Assuming the 90 days horizon QUEEN S is expected to generate 7.39 times less return on investment than Broadwind. In addition to that, QUEEN S is 1.74 times more volatile than Broadwind. It trades about 0.02 of its total potential returns per unit of risk. Broadwind is currently generating about 0.31 per unit of volatility. If you would invest  166.00  in Broadwind on October 8, 2024 and sell it today you would earn a total of  26.00  from holding Broadwind or generate 15.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

QUEEN S ROAD  vs.  Broadwind

QUEEN S ROAD

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in QUEEN S ROAD are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, QUEEN S may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Broadwind

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Broadwind are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Broadwind may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with QUEEN S and Broadwind

The main advantage of trading using opposite QUEEN S and Broadwind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QUEEN S position performs unexpectedly, Broadwind 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 Broadwind will offset losses from the drop in Broadwind's long position.

The idea behind QUEEN S ROAD and Broadwind pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.