Correlation Between Elixxer and Quarterhill

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

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

Diversification Opportunities for Elixxer and Quarterhill

0.0

Correlation Coefficient

Elixxer  Quarterhill

Pay attention - limited upside

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

Pair Corralation between Elixxer and Quarterhill

If you would invest  115.00  in Elixxer on September 23, 2024 and sell it today you would earn a total of  0.00  from holding Elixxer 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

Elixxer  vs.  Quarterhill

Elixxer

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Elixxer has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Elixxer is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Quarterhill

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Quarterhill are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Quarterhill is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Elixxer and Quarterhill

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

The idea behind Elixxer and Quarterhill 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.