Correlation Between QT Imaging and TriSalus Life

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

By analyzing existing cross correlation between QT Imaging Holdings and TriSalus Life Sciences, you can compare the effects of market volatilities on QT Imaging and TriSalus Life 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 QT Imaging with a short position of TriSalus Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of QT Imaging and TriSalus Life.

Diversification Opportunities for QT Imaging and TriSalus Life

-0.08

Correlation Coefficient

QT Imaging  TriSalus Life

Good diversification

The 3 months correlation between QTI and TriSalus is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding QT Imaging Holdings and TriSalus Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TriSalus Life Sciences and QT Imaging 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 QT Imaging Holdings are associated (or correlated) with TriSalus Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TriSalus Life Sciences has no effect on the direction of QT Imaging i.e., QT Imaging and TriSalus Life go up and down completely randomly.

Pair Corralation between QT Imaging and TriSalus Life

Considering the 90-day investment horizon QT Imaging Holdings is expected to generate 1.42 times more return on investment than TriSalus Life. However, QT Imaging is 1.42 times more volatile than TriSalus Life Sciences. It trades about 0.1 of its potential returns per unit of risk. TriSalus Life Sciences is currently generating about 0.05 per unit of risk. If you would invest  42.00  in QT Imaging Holdings on December 27, 2024 and sell it today you would earn a total of  15.00  from holding QT Imaging Holdings or generate 35.71% return on investment over 90 days.

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

QT Imaging Holdings  vs.  TriSalus Life Sciences

QT Imaging Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in QT Imaging Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile basic indicators, QT Imaging demonstrated solid returns over the last few months and may actually be approaching a breakup point.

TriSalus Life Sciences

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in TriSalus Life Sciences are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady forward indicators, TriSalus Life showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with QT Imaging and TriSalus Life

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

The idea behind QT Imaging Holdings and TriSalus Life Sciences 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.