Correlation Between QUALCOMM Incorporated and Haivision Systems

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

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

Diversification Opportunities for QUALCOMM Incorporated and Haivision Systems

0.68

Correlation Coefficient

QUALCOMM Incorporated  Haivision Systems

Poor diversification

The 3 months correlation between QUALCOMM and Haivision is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding QUALCOMM Incorporated and Haivision Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haivision Systems 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 Haivision Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haivision Systems has no effect on the direction of QUALCOMM Incorporated i.e., QUALCOMM Incorporated and Haivision Systems go up and down completely randomly.

Pair Corralation between QUALCOMM Incorporated and Haivision Systems

Assuming the 90 days trading horizon QUALCOMM Incorporated is expected to generate 1.63 times less return on investment than Haivision Systems. But when comparing it to its historical volatility, QUALCOMM Incorporated is 1.55 times less risky than Haivision Systems. It trades about 0.11 of its potential returns per unit of risk. Haivision Systems is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  380.00  in Haivision Systems on April 21, 2025 and sell it today you would earn a total of  86.00  from holding Haivision Systems or generate 22.63% return on investment over 90 days.

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

QUALCOMM Incorporated  vs.  Haivision Systems

QUALCOMM Incorporated

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in QUALCOMM Incorporated are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal technical and fundamental indicators, QUALCOMM Incorporated exhibited solid returns over the last few months and may actually be approaching a breakup point.

Haivision Systems

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Haivision Systems are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating forward indicators, Haivision Systems displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with QUALCOMM Incorporated and Haivision Systems

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

The idea behind QUALCOMM Incorporated and Haivision Systems 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.