Correlation Between Kontrol Technologies and Quisitive Technology

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

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

Diversification Opportunities for Kontrol Technologies and Quisitive Technology

-0.25

Correlation Coefficient

Kontrol Technologies  Quisitive Technology

Very good diversification

The 3 months correlation between Kontrol and Quisitive is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Kontrol Technologies Corp and Quisitive Technology Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quisitive Technology and Kontrol Technologies 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 Kontrol Technologies Corp are associated (or correlated) with Quisitive Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quisitive Technology has no effect on the direction of Kontrol Technologies i.e., Kontrol Technologies and Quisitive Technology go up and down completely randomly.

Pair Corralation between Kontrol Technologies and Quisitive Technology

Assuming the 90 days horizon Kontrol Technologies Corp is expected to under-perform the Quisitive Technology. But the otc stock apears to be less risky and, when comparing its historical volatility, Kontrol Technologies Corp is 1.26 times less risky than Quisitive Technology. The otc stock trades about -0.03 of its potential returns per unit of risk. The Quisitive Technology Solutions is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  24.00  in Quisitive Technology Solutions on December 30, 2024 and sell it today you would earn a total of  15.00  from holding Quisitive Technology Solutions or generate 62.5% return on investment over 90 days.

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

Kontrol Technologies Corp  vs.  Quisitive Technology Solutions

Kontrol Technologies Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kontrol Technologies Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's essential indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Quisitive Technology

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Quisitive Technology Solutions are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal basic indicators, Quisitive Technology reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kontrol Technologies and Quisitive Technology

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

The idea behind Kontrol Technologies Corp and Quisitive Technology Solutions 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.