Correlation Between Max Financial and Quick Heal

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

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

Diversification Opportunities for Max Financial and Quick Heal

0.84

Correlation Coefficient

Max Financial  Quick Heal

Very poor diversification

The 3 months correlation between Max and Quick is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Max Financial Services 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 Max Financial 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 Max Financial Services 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 Max Financial i.e., Max Financial and Quick Heal go up and down completely randomly.

Pair Corralation between Max Financial and Quick Heal

Assuming the 90 days trading horizon Max Financial is expected to generate 1.06 times less return on investment than Quick Heal. But when comparing it to its historical volatility, Max Financial Services is 2.87 times less risky than Quick Heal. It trades about 0.28 of its potential returns per unit of risk. Quick Heal Technologies is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  28,650  in Quick Heal Technologies on April 22, 2025 and sell it today you would earn a total of  6,345  from holding Quick Heal Technologies or generate 22.15% return on investment over 90 days.

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

Max Financial Services  vs.  Quick Heal Technologies

Max Financial Services

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Max Financial Services are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Max Financial unveiled solid returns over the last few months and may actually be approaching a breakup point.

Quick Heal Technologies

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Quick Heal Technologies are ranked lower than 8 (%) 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 Max Financial and Quick Heal

The main advantage of trading using opposite Max Financial and Quick Heal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Max Financial 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 Max Financial Services 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 Transaction History module to view history of all your transactions and understand their impact on performance.