Correlation Between Apex Frozen and Quick Heal

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

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

Diversification Opportunities for Apex Frozen and Quick Heal

0.87

Correlation Coefficient

Apex Frozen  Quick Heal

Very poor diversification

The 3 months correlation between Apex and Quick is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Apex Frozen Foods and Quick Heal Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quick Heal Technologies and Apex Frozen 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 Apex Frozen Foods are associated (or correlated) with Quick Heal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quick Heal Technologies has no effect on the direction of Apex Frozen i.e., Apex Frozen and Quick Heal go up and down completely randomly.

Pair Corralation between Apex Frozen and Quick Heal

Assuming the 90 days trading horizon Apex Frozen is expected to generate 1.21 times less return on investment than Quick Heal. But when comparing it to its historical volatility, Apex Frozen Foods is 1.77 times less risky than Quick Heal. It trades about 0.11 of its potential returns per unit of risk. Quick Heal Technologies is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  29,265  in Quick Heal Technologies on April 25, 2025 and sell it today you would earn a total of  4,360  from holding Quick Heal Technologies or generate 14.9% return on investment over 90 days.

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

Apex Frozen Foods  vs.  Quick Heal Technologies

Apex Frozen Foods

Risk-Adjusted Performance

OK

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

Quick Heal Technologies

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Quick Heal Technologies are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Quick Heal exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apex Frozen and Quick Heal

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

The idea behind Apex Frozen Foods and Quick Heal Technologies 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.