Correlation Between QUALCOMM Incorporated and Coveo Solutions

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

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

Diversification Opportunities for QUALCOMM Incorporated and Coveo Solutions

0.56

Correlation Coefficient

QUALCOMM Incorporated  Coveo Solutions

Very weak diversification

The 3 months correlation between QUALCOMM and Coveo is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding QUALCOMM Incorporated and Coveo Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coveo Solutions and QUALCOMM Incorporated 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 Incorporated are associated (or correlated) with Coveo Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coveo Solutions has no effect on the direction of QUALCOMM Incorporated i.e., QUALCOMM Incorporated and Coveo Solutions go up and down completely randomly.

Pair Corralation between QUALCOMM Incorporated and Coveo Solutions

Assuming the 90 days trading horizon QUALCOMM Incorporated is expected to generate 3.68 times less return on investment than Coveo Solutions. In addition to that, QUALCOMM Incorporated is 1.19 times more volatile than Coveo Solutions. It trades about 0.08 of its total potential returns per unit of risk. Coveo Solutions is currently generating about 0.33 per unit of volatility. If you would invest  608.00  in Coveo Solutions on April 25, 2025 and sell it today you would earn a total of  232.00  from holding Coveo Solutions or generate 38.16% return on investment over 90 days.

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

QUALCOMM Incorporated  vs.  Coveo Solutions

QUALCOMM Incorporated

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in QUALCOMM Incorporated are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, QUALCOMM Incorporated may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Coveo Solutions

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Coveo Solutions are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Coveo Solutions displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with QUALCOMM Incorporated and Coveo Solutions

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

The idea behind QUALCOMM Incorporated and Coveo Solutions 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.