Correlation Between Q Linea and Precise Biometrics

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Q Linea and Precise Biometrics 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 Q Linea and Precise Biometrics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Q linea AB and Precise Biometrics AB, you can compare the effects of market volatilities on Q Linea and Precise Biometrics 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 Q Linea with a short position of Precise Biometrics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Q Linea and Precise Biometrics.

Diversification Opportunities for Q Linea and Precise Biometrics

-0.68
  Correlation Coefficient

Excellent diversification

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

Pair Corralation between Q Linea and Precise Biometrics

Assuming the 90 days trading horizon Q linea AB is expected to generate 1.53 times more return on investment than Precise Biometrics. However, Q Linea is 1.53 times more volatile than Precise Biometrics AB. It trades about 0.19 of its potential returns per unit of risk. Precise Biometrics AB is currently generating about -0.1 per unit of risk. If you would invest  3,500  in Q linea AB on April 21, 2025 and sell it today you would earn a total of  2,500  from holding Q linea AB or generate 71.43% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Q linea AB  vs.  Precise Biometrics AB

 Performance 
       Timeline  
Q linea AB 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Q linea AB are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward indicators, Q Linea sustained solid returns over the last few months and may actually be approaching a breakup point.
Precise Biometrics 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Precise Biometrics AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Q Linea and Precise Biometrics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Q Linea and Precise Biometrics

The main advantage of trading using opposite Q Linea and Precise Biometrics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Q Linea position performs unexpectedly, Precise Biometrics 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 Precise Biometrics will offset losses from the drop in Precise Biometrics' long position.
The idea behind Q linea AB and Precise Biometrics AB 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

Other Complementary Tools

Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
CEOs Directory
Screen CEOs from public companies around the world
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios