Correlation Between Quanta Services and Concrete Pumping

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

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

Diversification Opportunities for Quanta Services and Concrete Pumping

0.47

Correlation Coefficient

Quanta Services  Concrete Pumping

Very weak diversification

The 3 months correlation between Quanta and Concrete is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Quanta Services and Concrete Pumping Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concrete Pumping Holdings and Quanta Services 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 Quanta Services are associated (or correlated) with Concrete Pumping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concrete Pumping Holdings has no effect on the direction of Quanta Services i.e., Quanta Services and Concrete Pumping go up and down completely randomly.

Pair Corralation between Quanta Services and Concrete Pumping

Considering the 90-day investment horizon Quanta Services is expected to under-perform the Concrete Pumping. But the stock apears to be less risky and, when comparing its historical volatility, Quanta Services is 1.3 times less risky than Concrete Pumping. The stock trades about -0.09 of its potential returns per unit of risk. The Concrete Pumping Holdings is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  584.00  in Concrete Pumping Holdings on December 29, 2024 and sell it today you would lose (48.00) from holding Concrete Pumping Holdings or give up 8.22% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Quanta Services  vs.  Concrete Pumping Holdings

Quanta Services

Risk-Adjusted Performance

Very Weak

Over the last 90 days Quanta Services has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Concrete Pumping Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Concrete Pumping Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Concrete Pumping is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Quanta Services and Concrete Pumping

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

The idea behind Quanta Services and Concrete Pumping Holdings 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.