Correlation Between Qualcomm and Workspace Group

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

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

Diversification Opportunities for Qualcomm and Workspace Group

-0.54

Correlation Coefficient

Qualcomm  Workspace Group

Excellent diversification

The 3 months correlation between Qualcomm and Workspace is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Qualcomm and Workspace Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workspace Group PLC and Qualcomm 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 Qualcomm are associated (or correlated) with Workspace Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Workspace Group PLC has no effect on the direction of Qualcomm i.e., Qualcomm and Workspace Group go up and down completely randomly.

Pair Corralation between Qualcomm and Workspace Group

Assuming the 90 days trading horizon Qualcomm is expected to generate 1.17 times more return on investment than Workspace Group. However, Qualcomm is 1.17 times more volatile than Workspace Group PLC. It trades about 0.1 of its potential returns per unit of risk. Workspace Group PLC is currently generating about -0.05 per unit of risk. If you would invest  13,699  in Qualcomm on April 21, 2025 and sell it today you would earn a total of  1,601  from holding Qualcomm or generate 11.69% return on investment over 90 days.

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

Qualcomm  vs.  Workspace Group PLC

Qualcomm

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Qualcomm are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Qualcomm may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Workspace Group PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Workspace Group PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Workspace Group is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Qualcomm and Workspace Group

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

The idea behind Qualcomm and Workspace Group PLC 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.