Correlation Between Quantum Blockchain and Hiscox

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

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

Diversification Opportunities for Quantum Blockchain and Hiscox

-0.08

Correlation Coefficient

Quantum Blockchain  Hiscox

Good diversification

The 3 months correlation between Quantum and Hiscox is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Quantum Blockchain Technologie and Hiscox in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hiscox and Quantum Blockchain 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 Quantum Blockchain Technologies are associated (or correlated) with Hiscox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hiscox has no effect on the direction of Quantum Blockchain i.e., Quantum Blockchain and Hiscox go up and down completely randomly.

Pair Corralation between Quantum Blockchain and Hiscox

Assuming the 90 days trading horizon Quantum Blockchain Technologies is expected to generate 6.53 times more return on investment than Hiscox. However, Quantum Blockchain is 6.53 times more volatile than Hiscox. It trades about 0.02 of its potential returns per unit of risk. Hiscox is currently generating about 0.02 per unit of risk. If you would invest  180.00  in Quantum Blockchain Technologies on December 3, 2024 and sell it today you would lose (102.00) from holding Quantum Blockchain Technologies or give up 56.67% of portfolio value over 90 days.

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

Quantum Blockchain Technologie  vs.  Hiscox

Quantum Blockchain

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Quantum Blockchain Technologies are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Quantum Blockchain exhibited solid returns over the last few months and may actually be approaching a breakup point.

Hiscox

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hiscox are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Hiscox may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Quantum Blockchain and Hiscox

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

The idea behind Quantum Blockchain Technologies and Hiscox 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.