Correlation Between Quest For and GIMV NV

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

By analyzing existing cross correlation between Quest For Growth and GIMV NV, you can compare the effects of market volatilities on Quest For and GIMV NV 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 Quest For with a short position of GIMV NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quest For and GIMV NV.

Diversification Opportunities for Quest For and GIMV NV

0.43

Correlation Coefficient

Quest For  GIMV NV

Very weak diversification

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

Pair Corralation between Quest For and GIMV NV

Assuming the 90 days trading horizon Quest For Growth is expected to under-perform the GIMV NV. But the stock apears to be less risky and, when comparing its historical volatility, Quest For Growth is 1.17 times less risky than GIMV NV. The stock trades about -0.21 of its potential returns per unit of risk. The GIMV NV is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest  4,255  in GIMV NV on September 19, 2024 and sell it today you would lose (335.00) from holding GIMV NV or give up 7.87% of portfolio value over 90 days.

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

Quest For Growth  vs.  GIMV NV

Quest For Growth

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Quest For Growth has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

GIMV NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GIMV NV has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Quest For and GIMV NV

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

The idea behind Quest For Growth and GIMV NV 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.