Correlation Between QUEEN S and Strix Group

Can any of the company-specific risk be diversified away by investing in both QUEEN S and Strix 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 QUEEN S and Strix Group 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 Strix Group Plc, you can compare the effects of market volatilities on QUEEN S and Strix 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 QUEEN S with a short position of Strix Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of QUEEN S and Strix Group.

Diversification Opportunities for QUEEN S and Strix Group

-0.3

Correlation Coefficient

QUEEN S  Strix Group

Very good diversification

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

Pair Corralation between QUEEN S and Strix Group

Assuming the 90 days horizon QUEEN S ROAD is expected to under-perform the Strix Group. But the stock apears to be less risky and, when comparing its historical volatility, QUEEN S ROAD is 1.03 times less risky than Strix Group. The stock trades about -0.15 of its potential returns per unit of risk. The Strix Group Plc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  56.00  in Strix Group Plc on December 28, 2024 and sell it today you would earn a total of  1.00  from holding Strix Group Plc or generate 1.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	88.71%
Values	Daily Returns

QUEEN S ROAD  vs.  Strix Group Plc

QUEEN S ROAD

Risk-Adjusted Performance

Very Weak

Over the last 90 days QUEEN S ROAD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Strix Group Plc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Strix Group Plc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Strix Group is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with QUEEN S and Strix Group

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

The idea behind QUEEN S ROAD and Strix Group Plc 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.