Correlation Between Qleanair Holding and Goodbye Kansas

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

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

Diversification Opportunities for Qleanair Holding and Goodbye Kansas

0.24

Correlation Coefficient

Qleanair Holding  Goodbye Kansas

Modest diversification

The 3 months correlation between Qleanair and Goodbye is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Qleanair Holding AB and Goodbye Kansas Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodbye Kansas Group and Qleanair Holding 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 Qleanair Holding AB are associated (or correlated) with Goodbye Kansas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodbye Kansas Group has no effect on the direction of Qleanair Holding i.e., Qleanair Holding and Goodbye Kansas go up and down completely randomly.

Pair Corralation between Qleanair Holding and Goodbye Kansas

Assuming the 90 days trading horizon Qleanair Holding AB is expected to under-perform the Goodbye Kansas. But the stock apears to be less risky and, when comparing its historical volatility, Qleanair Holding AB is 1.32 times less risky than Goodbye Kansas. The stock trades about 0.0 of its potential returns per unit of risk. The Goodbye Kansas Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  145.00  in Goodbye Kansas Group on October 9, 2024 and sell it today you would earn a total of  0.00  from holding Goodbye Kansas Group or generate 0.0% return on investment over 90 days.

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

Qleanair Holding AB  vs.  Goodbye Kansas Group

Qleanair Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Qleanair Holding AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Goodbye Kansas Group

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Goodbye Kansas Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain forward-looking signals, Goodbye Kansas may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Qleanair Holding and Goodbye Kansas

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

The idea behind Qleanair Holding AB and Goodbye Kansas Group 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.