Correlation Between Quad Energy and Radcom

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

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

Diversification Opportunities for Quad Energy and Radcom

0.0

Correlation Coefficient

Quad Energy  Radcom

Pay attention - limited upside

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

Pair Corralation between Quad Energy and Radcom

If you would invest  2.00  in Quad Energy Corp on December 5, 2024 and sell it today you would earn a total of  0.00  from holding Quad Energy Corp or generate 0.0% return on investment over 90 days.

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

Quad Energy Corp  vs.  Radcom

Quad Energy Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Quad Energy Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward indicators, Quad Energy is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Radcom

Risk-Adjusted Performance

Very Weak

Over the last 90 days Radcom has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Radcom is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Quad Energy and Radcom

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

The idea behind Quad Energy Corp and Radcom 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.