Correlation Between QRF SCA and Cofinimmo

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

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

Diversification Opportunities for QRF SCA and Cofinimmo

0.71

Correlation Coefficient

QRF SCA  Cofinimmo

Poor diversification

The 3 months correlation between QRF and Cofinimmo is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding QRF SCA and Cofinimmo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cofinimmo SA and QRF SCA 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 QRF SCA are associated (or correlated) with Cofinimmo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cofinimmo SA has no effect on the direction of QRF SCA i.e., QRF SCA and Cofinimmo go up and down completely randomly.

Pair Corralation between QRF SCA and Cofinimmo

Assuming the 90 days trading horizon QRF SCA is expected to generate 0.95 times more return on investment than Cofinimmo. However, QRF SCA is 1.06 times less risky than Cofinimmo. It trades about 0.04 of its potential returns per unit of risk. Cofinimmo SA is currently generating about -0.02 per unit of risk. If you would invest  823.00  in QRF SCA on October 9, 2024 and sell it today you would earn a total of  207.00  from holding QRF SCA or generate 25.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	99.81%
Values	Daily Returns

QRF SCA  vs.  Cofinimmo SA

QRF SCA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days QRF SCA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's technical and fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Cofinimmo SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cofinimmo 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 February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with QRF SCA and Cofinimmo

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

The idea behind QRF SCA and Cofinimmo 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.

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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.