Correlation Between Papa Johns and Quebecor

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

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

Diversification Opportunities for Papa Johns and Quebecor

0.9

Correlation Coefficient

Papa Johns  Quebecor

Almost no diversification

The 3 months correlation between Papa and Quebecor is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Papa Johns International and Quebecor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quebecor and Papa Johns 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 Papa Johns International are associated (or correlated) with Quebecor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quebecor has no effect on the direction of Papa Johns i.e., Papa Johns and Quebecor go up and down completely randomly.

Pair Corralation between Papa Johns and Quebecor

Assuming the 90 days horizon Papa Johns International is expected to generate 3.44 times more return on investment than Quebecor. However, Papa Johns is 3.44 times more volatile than Quebecor. It trades about 0.16 of its potential returns per unit of risk. Quebecor is currently generating about 0.14 per unit of risk. If you would invest  2,793  in Papa Johns International on April 24, 2025 and sell it today you would earn a total of  983.00  from holding Papa Johns International or generate 35.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.44%
Values	Daily Returns

Papa Johns International  vs.  Quebecor

Papa Johns International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Papa Johns International are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Papa Johns reported solid returns over the last few months and may actually be approaching a breakup point.

Quebecor

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Quebecor are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Quebecor may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Papa Johns and Quebecor

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

The idea behind Papa Johns International and Quebecor 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.

Check out your portfolio center.

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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.