Correlation Between Quantified Stf and Quantex Fund

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

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

Diversification Opportunities for Quantified Stf and Quantex Fund

0.56

Correlation Coefficient

Quantified Stf  Quantex Fund

Very weak diversification

The 3 months correlation between Quantified and Quantex is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Quantified Stf Fund and Quantex Fund Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quantex Fund Retail and Quantified Stf 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 Quantified Stf Fund are associated (or correlated) with Quantex Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantex Fund Retail has no effect on the direction of Quantified Stf i.e., Quantified Stf and Quantex Fund go up and down completely randomly.

Pair Corralation between Quantified Stf and Quantex Fund

Assuming the 90 days horizon Quantified Stf Fund is expected to under-perform the Quantex Fund. In addition to that, Quantified Stf is 2.29 times more volatile than Quantex Fund Retail. It trades about -0.21 of its total potential returns per unit of risk. Quantex Fund Retail is currently generating about -0.02 per unit of volatility. If you would invest  3,451  in Quantex Fund Retail on December 30, 2024 and sell it today you would lose (49.00) from holding Quantex Fund Retail or give up 1.42% of portfolio value over 90 days.

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

Quantified Stf Fund  vs.  Quantex Fund Retail

Quantified Stf

Risk-Adjusted Performance

Very Weak

Over the last 90 days Quantified Stf Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's technical and fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Quantex Fund Retail

Risk-Adjusted Performance

Very Weak

Over the last 90 days Quantex Fund Retail has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Quantex Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Quantified Stf and Quantex Fund

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

The idea behind Quantified Stf Fund and Quantex Fund Retail 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.