Correlation Between Questor Technology and ATCO

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

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

Diversification Opportunities for Questor Technology and ATCO

-0.28

Correlation Coefficient

Questor Technology  ATCO

Very good diversification

The 3 months correlation between Questor and ATCO is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Questor Technology and ATCO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATCO and Questor Technology 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 Questor Technology are associated (or correlated) with ATCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATCO has no effect on the direction of Questor Technology i.e., Questor Technology and ATCO go up and down completely randomly.

Pair Corralation between Questor Technology and ATCO

Assuming the 90 days horizon Questor Technology is expected to under-perform the ATCO. In addition to that, Questor Technology is 5.38 times more volatile than ATCO. It trades about -0.08 of its total potential returns per unit of risk. ATCO is currently generating about 0.04 per unit of volatility. If you would invest  4,890  in ATCO on December 31, 2024 and sell it today you would earn a total of  115.00  from holding ATCO or generate 2.35% return on investment over 90 days.

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

Questor Technology  vs.  ATCO

Questor Technology

Risk-Adjusted Performance

Very Weak

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

ATCO

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ATCO are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, ATCO is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Questor Technology and ATCO

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

The idea behind Questor Technology and ATCO 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.