Correlation Between Quisitive Technology and Kontrol Technologies

Can any of the company-specific risk be diversified away by investing in both Quisitive Technology and Kontrol Technologies 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 Kontrol Technologies 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 Kontrol Technologies Corp, you can compare the effects of market volatilities on Quisitive Technology and Kontrol Technologies 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 Kontrol Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quisitive Technology and Kontrol Technologies.

Diversification Opportunities for Quisitive Technology and Kontrol Technologies

-0.17

Correlation Coefficient

Quisitive Technology  Kontrol Technologies

Good diversification

The 3 months correlation between Quisitive and Kontrol is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Quisitive Technology Solutions and Kontrol Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kontrol Technologies 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 Kontrol Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kontrol Technologies Corp has no effect on the direction of Quisitive Technology i.e., Quisitive Technology and Kontrol Technologies go up and down completely randomly.

Pair Corralation between Quisitive Technology and Kontrol Technologies

Assuming the 90 days horizon Quisitive Technology Solutions is expected to under-perform the Kontrol Technologies. But the otc stock apears to be less risky and, when comparing its historical volatility, Quisitive Technology Solutions is 2.51 times less risky than Kontrol Technologies. The otc stock trades about 0.0 of its potential returns per unit of risk. The Kontrol Technologies Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  15.00  in Kontrol Technologies Corp on September 12, 2024 and sell it today you would lose (2.00) from holding Kontrol Technologies Corp or give up 13.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Quisitive Technology Solutions  vs.  Kontrol Technologies Corp

Quisitive Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Quisitive Technology Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Quisitive Technology is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Kontrol Technologies Corp

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Kontrol Technologies Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, Kontrol Technologies is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Quisitive Technology and Kontrol Technologies

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

The idea behind Quisitive Technology Solutions and Kontrol Technologies 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.