Correlation Between QLI Old and Procaps Group

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

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

Diversification Opportunities for QLI Old and Procaps Group

0.0

Correlation Coefficient

QLI Old  Procaps Group

Pay attention - limited upside

The 3 months correlation between QLI and Procaps is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding QLI Old and Procaps Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procaps Group SA and QLI Old 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 QLI Old are associated (or correlated) with Procaps Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Procaps Group SA has no effect on the direction of QLI Old i.e., QLI Old and Procaps Group go up and down completely randomly.

Pair Corralation between QLI Old and Procaps Group

If you would invest  163.00  in Procaps Group SA on December 1, 2024 and sell it today you would lose (57.00) from holding Procaps Group SA or give up 34.97% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

QLI Old  vs.  Procaps Group SA

QLI Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days QLI Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong essential indicators, QLI Old is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Procaps Group SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Procaps Group SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Procaps Group is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with QLI Old and Procaps Group

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

The idea behind QLI Old and Procaps Group SA 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.