Correlation Between Quisitive Technology and Infinico Metals

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

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

Diversification Opportunities for Quisitive Technology and Infinico Metals

0.29

Correlation Coefficient

Quisitive Technology  Infinico Metals

Modest diversification

The 3 months correlation between Quisitive and Infinico is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Quisitive Technology Solutions and Infinico Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinico Metals Corp and Quisitive 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 Quisitive Technology Solutions are associated (or correlated) with Infinico Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infinico Metals Corp has no effect on the direction of Quisitive Technology i.e., Quisitive Technology and Infinico Metals go up and down completely randomly.

Pair Corralation between Quisitive Technology and Infinico Metals

Assuming the 90 days trading horizon Quisitive Technology Solutions is expected to generate 0.66 times more return on investment than Infinico Metals. However, Quisitive Technology Solutions is 1.52 times less risky than Infinico Metals. It trades about 0.23 of its potential returns per unit of risk. Infinico Metals Corp is currently generating about -0.09 per unit of risk. If you would invest  38.00  in Quisitive Technology Solutions on October 5, 2024 and sell it today you would earn a total of  17.00  from holding Quisitive Technology Solutions or generate 44.74% return on investment over 90 days.

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

Quisitive Technology Solutions  vs.  Infinico Metals Corp

Quisitive Technology

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Quisitive Technology Solutions are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak forward indicators, Quisitive Technology showed solid returns over the last few months and may actually be approaching a breakup point.

Infinico Metals Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Quisitive Technology and Infinico Metals

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

The idea behind Quisitive Technology Solutions and Infinico Metals Corp 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.