Correlation Between Fleetcor Technologies and Qualys

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

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

Diversification Opportunities for Fleetcor Technologies and Qualys

-0.43

Correlation Coefficient

Fleetcor Technologies  Qualys

Very good diversification

The 3 months correlation between Fleetcor and Qualys is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Fleetcor Technologies and Qualys Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qualys Inc and Fleetcor Technologies 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 Fleetcor Technologies are associated (or correlated) with Qualys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qualys Inc has no effect on the direction of Fleetcor Technologies i.e., Fleetcor Technologies and Qualys go up and down completely randomly.

Pair Corralation between Fleetcor Technologies and Qualys

If you would invest  12,439  in Qualys Inc on August 30, 2024 and sell it today you would earn a total of  3,029  from holding Qualys Inc or generate 24.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	4.55%
Values	Daily Returns

Fleetcor Technologies  vs.  Qualys Inc

Fleetcor Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fleetcor Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, Fleetcor Technologies is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Qualys Inc

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Qualys Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Qualys unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Fleetcor Technologies and Qualys

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

The idea behind Fleetcor Technologies and Qualys Inc 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.