Correlation Between Quantum Software and X Trade

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Can any of the company-specific risk be diversified away by investing in both Quantum Software and X Trade 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 Quantum Software and X Trade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quantum Software SA and X Trade Brokers, you can compare the effects of market volatilities on Quantum Software and X Trade 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 Quantum Software with a short position of X Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quantum Software and X Trade.

Diversification Opportunities for Quantum Software and X Trade

QuantumXTBDiversified AwayQuantumXTBDiversified Away100%
-0.09
  Correlation Coefficient

Good diversification

The 3 months correlation between Quantum and XTB is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Quantum Software SA and X Trade Brokers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X Trade Brokers and Quantum Software 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 Quantum Software SA are associated (or correlated) with X Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X Trade Brokers has no effect on the direction of Quantum Software i.e., Quantum Software and X Trade go up and down completely randomly.

Pair Corralation between Quantum Software and X Trade

Assuming the 90 days trading horizon Quantum Software SA is expected to under-perform the X Trade. In addition to that, Quantum Software is 1.32 times more volatile than X Trade Brokers. It trades about -0.11 of its total potential returns per unit of risk. X Trade Brokers is currently generating about -0.01 per unit of volatility. If you would invest  7,080  in X Trade Brokers on November 24, 2024 and sell it today you would lose (270.00) from holding X Trade Brokers or give up 3.81% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Quantum Software SA  vs.  X Trade Brokers

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -20-15-10-50510
JavaScript chart by amCharts 3.21.15QNT XTB
       Timeline  
Quantum Software 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Quantum Software SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in March 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb181920212223
X Trade Brokers 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days X Trade Brokers has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, X Trade is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb6466687072747678

Quantum Software and X Trade Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-6.44-4.82-3.21-1.590.01.492.984.475.95 0.030.040.050.060.07
JavaScript chart by amCharts 3.21.15QNT XTB
       Returns  

Pair Trading with Quantum Software and X Trade

The main advantage of trading using opposite Quantum Software and X Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quantum Software position performs unexpectedly, X Trade 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 X Trade will offset losses from the drop in X Trade's long position.
The idea behind Quantum Software SA and X Trade Brokers 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

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