Correlation Between Qiagen NV and IQVIA Holdings

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

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

Diversification Opportunities for Qiagen NV and IQVIA Holdings

0.26

Correlation Coefficient

Qiagen NV  IQVIA Holdings

Modest diversification

The 3 months correlation between Qiagen and IQVIA is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Qiagen NV and IQVIA Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IQVIA Holdings 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 IQVIA Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IQVIA Holdings has no effect on the direction of Qiagen NV i.e., Qiagen NV and IQVIA Holdings go up and down completely randomly.

Pair Corralation between Qiagen NV and IQVIA Holdings

Given the investment horizon of 90 days Qiagen NV is expected to generate 0.63 times more return on investment than IQVIA Holdings. However, Qiagen NV is 1.6 times less risky than IQVIA Holdings. It trades about 0.1 of its potential returns per unit of risk. IQVIA Holdings is currently generating about -0.2 per unit of risk. If you would invest  4,212  in Qiagen NV on September 21, 2024 and sell it today you would earn a total of  220.00  from holding Qiagen NV or generate 5.22% return on investment over 90 days.

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

Qiagen NV  vs.  IQVIA Holdings

Qiagen NV

Risk-Adjusted Performance

0 of 100

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 very healthy technical and fundamental indicators, Qiagen NV is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

IQVIA Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days IQVIA Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Qiagen NV and IQVIA Holdings

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

The idea behind Qiagen NV and IQVIA 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.