Correlation Between Queste Communications and Anax Metals

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

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

Diversification Opportunities for Queste Communications and Anax Metals

-0.23

Correlation Coefficient

Queste Communications  Anax Metals

Very good diversification

The 3 months correlation between Queste and Anax is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Queste Communications and Anax Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anax Metals and Queste Communications 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 Queste Communications are associated (or correlated) with Anax Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anax Metals has no effect on the direction of Queste Communications i.e., Queste Communications and Anax Metals go up and down completely randomly.

Pair Corralation between Queste Communications and Anax Metals

Assuming the 90 days trading horizon Queste Communications is expected to under-perform the Anax Metals. But the stock apears to be less risky and, when comparing its historical volatility, Queste Communications is 3.57 times less risky than Anax Metals. The stock trades about -0.23 of its potential returns per unit of risk. The Anax Metals is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  1.10  in Anax Metals on October 10, 2024 and sell it today you would lose (0.10) from holding Anax Metals or give up 9.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.0%
Values	Daily Returns

Queste Communications  vs.  Anax Metals

Queste Communications

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Queste Communications has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Anax Metals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anax Metals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Queste Communications and Anax Metals

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

The idea behind Queste Communications and Anax Metals 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.

Check out your portfolio center.

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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.