Correlation Between QualTek Services and KORE Group

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

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

Diversification Opportunities for QualTek Services and KORE Group

0.0

Correlation Coefficient

QualTek Services  KORE Group

Pay attention - limited upside

The 3 months correlation between QualTek and KORE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding QualTek Services and KORE Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KORE Group Holdings and QualTek Services 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 QualTek Services are associated (or correlated) with KORE Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KORE Group Holdings has no effect on the direction of QualTek Services i.e., QualTek Services and KORE Group go up and down completely randomly.

Pair Corralation between QualTek Services and KORE Group

If you would invest  133.00  in KORE Group Holdings on December 20, 2024 and sell it today you would earn a total of  117.00  from holding KORE Group Holdings or generate 87.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

QualTek Services  vs.  KORE Group Holdings

QualTek Services

Risk-Adjusted Performance

Very Weak

Over the last 90 days QualTek Services has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, QualTek Services is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

KORE Group Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in KORE Group Holdings are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting basic indicators, KORE Group exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with QualTek Services and KORE Group

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

The idea behind QualTek Services and KORE Group Holdings 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.