Correlation Between Qiagen NV and Fonar

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

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

Diversification Opportunities for Qiagen NV and Fonar

0.52

Correlation Coefficient

Qiagen NV  Fonar

Very weak diversification

The 3 months correlation between Qiagen and Fonar is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Qiagen NV and Fonar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fonar and Qiagen NV 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 Qiagen NV are associated (or correlated) with Fonar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fonar has no effect on the direction of Qiagen NV i.e., Qiagen NV and Fonar go up and down completely randomly.

Pair Corralation between Qiagen NV and Fonar

Given the investment horizon of 90 days Qiagen NV is expected to under-perform the Fonar. But the stock apears to be less risky and, when comparing its historical volatility, Qiagen NV is 1.21 times less risky than Fonar. The stock trades about -0.13 of its potential returns per unit of risk. The Fonar is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  1,498  in Fonar on December 28, 2024 and sell it today you would lose (90.00) from holding Fonar or give up 6.01% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.36%
Values	Daily Returns

Qiagen NV  vs.  Fonar

Qiagen NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Qiagen NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Fonar

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fonar has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Fonar 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 Qiagen NV and Fonar

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

The idea behind Qiagen NV and Fonar 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.