Correlation Between Quadpack Industries and Gascogne

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

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

Diversification Opportunities for Quadpack Industries and Gascogne

0.0

Correlation Coefficient

Quadpack Industries  Gascogne

Pay attention - limited upside

The 3 months correlation between Quadpack and Gascogne is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Quadpack Industries SA and Gascogne SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gascogne SA and Quadpack Industries 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 Quadpack Industries SA are associated (or correlated) with Gascogne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gascogne SA has no effect on the direction of Quadpack Industries i.e., Quadpack Industries and Gascogne go up and down completely randomly.

Pair Corralation between Quadpack Industries and Gascogne

If you would invest  1,600  in Quadpack Industries SA on December 5, 2024 and sell it today you would earn a total of  0.00  from holding Quadpack Industries SA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	83.87%
Values	Daily Returns

Quadpack Industries SA  vs.  Gascogne SA

Quadpack Industries

Risk-Adjusted Performance

Very Weak

Over the last 90 days Quadpack Industries SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Quadpack Industries is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Gascogne SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gascogne SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Gascogne is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Quadpack Industries and Gascogne

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

The idea behind Quadpack Industries SA and Gascogne SA 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.