Correlation Between Gofore Oyj and Qt Group

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

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

Diversification Opportunities for Gofore Oyj and Qt Group

-0.09

Correlation Coefficient

Gofore Oyj  Qt Group

Good diversification

The 3 months correlation between Gofore and QTCOM is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Gofore Oyj and Qt Group Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qt Group Oyj and Gofore Oyj 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 Gofore Oyj are associated (or correlated) with Qt Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qt Group Oyj has no effect on the direction of Gofore Oyj i.e., Gofore Oyj and Qt Group go up and down completely randomly.

Pair Corralation between Gofore Oyj and Qt Group

Assuming the 90 days trading horizon Gofore Oyj is expected to generate 1.34 times less return on investment than Qt Group. In addition to that, Gofore Oyj is 1.7 times more volatile than Qt Group Oyj. It trades about 0.02 of its total potential returns per unit of risk. Qt Group Oyj is currently generating about 0.05 per unit of volatility. If you would invest  5,720  in Qt Group Oyj on April 24, 2025 and sell it today you would earn a total of  265.00  from holding Qt Group Oyj or generate 4.63% return on investment over 90 days.

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

Gofore Oyj  vs.  Qt Group Oyj

Gofore Oyj

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Gofore Oyj are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong technical and fundamental indicators, Gofore Oyj is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Qt Group Oyj

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Qt Group Oyj are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong technical indicators, Qt Group is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Gofore Oyj and Qt Group

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

The idea behind Gofore Oyj and Qt Group Oyj 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.