Correlation Between Qed Connect and Glucose Health

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

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

Diversification Opportunities for Qed Connect and Glucose Health

0.62

Correlation Coefficient

Qed Connect  Glucose Health

Poor diversification

The 3 months correlation between Qed and Glucose is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Qed Connect and Glucose Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glucose Health and Qed Connect 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 Qed Connect are associated (or correlated) with Glucose Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glucose Health has no effect on the direction of Qed Connect i.e., Qed Connect and Glucose Health go up and down completely randomly.

Pair Corralation between Qed Connect and Glucose Health

Given the investment horizon of 90 days Qed Connect is expected to under-perform the Glucose Health. But the pink sheet apears to be less risky and, when comparing its historical volatility, Qed Connect is 1.12 times less risky than Glucose Health. The pink sheet trades about -0.15 of its potential returns per unit of risk. The Glucose Health is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  14.00  in Glucose Health on September 24, 2024 and sell it today you would lose (2.00) from holding Glucose Health or give up 14.29% of portfolio value over 90 days.

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

Qed Connect  vs.  Glucose Health

Qed Connect

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Qed Connect has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Glucose Health

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Glucose Health are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, Glucose Health exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Qed Connect and Glucose Health

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

The idea behind Qed Connect and Glucose Health 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.