Correlation Between QMMM Holdings and Able View

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

By analyzing existing cross correlation between QMMM Holdings Limited and Able View Global, you can compare the effects of market volatilities on QMMM Holdings and Able View 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 QMMM Holdings with a short position of Able View. Check out your portfolio center. Please also check ongoing floating volatility patterns of QMMM Holdings and Able View.

Diversification Opportunities for QMMM Holdings and Able View

0.74

Correlation Coefficient

QMMM Holdings  Able View

Poor diversification

The 3 months correlation between QMMM and Able is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding QMMM Holdings Limited and Able View Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Able View Global and QMMM Holdings 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 QMMM Holdings Limited are associated (or correlated) with Able View. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Able View Global has no effect on the direction of QMMM Holdings i.e., QMMM Holdings and Able View go up and down completely randomly.

Pair Corralation between QMMM Holdings and Able View

Given the investment horizon of 90 days QMMM Holdings Limited is expected to under-perform the Able View. In addition to that, QMMM Holdings is 3.24 times more volatile than Able View Global. It trades about -0.03 of its total potential returns per unit of risk. Able View Global is currently generating about -0.04 per unit of volatility. If you would invest  99.00  in Able View Global on October 8, 2024 and sell it today you would lose (21.00) from holding Able View Global or give up 21.21% of portfolio value over 90 days.

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

QMMM Holdings Limited  vs.  Able View Global

QMMM Holdings Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days QMMM Holdings Limited 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 primary indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Able View Global

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with QMMM Holdings and Able View

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

The idea behind QMMM Holdings Limited and Able View Global 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.