Correlation Between Quantum Software and Carlson Investments

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

By analyzing existing cross correlation between Quantum Software SA and Carlson Investments SA, you can compare the effects of market volatilities on Quantum Software and Carlson Investments 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 Quantum Software with a short position of Carlson Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quantum Software and Carlson Investments.

Diversification Opportunities for Quantum Software and Carlson Investments

0.16

Correlation Coefficient

Quantum Software  Carlson Investments

Average diversification

The 3 months correlation between Quantum and Carlson is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Quantum Software SA and Carlson Investments SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlson Investments and Quantum Software 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 Quantum Software SA are associated (or correlated) with Carlson Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlson Investments has no effect on the direction of Quantum Software i.e., Quantum Software and Carlson Investments go up and down completely randomly.

Pair Corralation between Quantum Software and Carlson Investments

Assuming the 90 days trading horizon Quantum Software SA is expected to generate 1.06 times more return on investment than Carlson Investments. However, Quantum Software is 1.06 times more volatile than Carlson Investments SA. It trades about 0.18 of its potential returns per unit of risk. Carlson Investments SA is currently generating about 0.03 per unit of risk. If you would invest  1,760  in Quantum Software SA on April 24, 2025 and sell it today you would earn a total of  1,040  from holding Quantum Software SA or generate 59.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.77%
Values	Daily Returns

Quantum Software SA  vs.  Carlson Investments SA

Quantum Software

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Quantum Software SA are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Quantum Software reported solid returns over the last few months and may actually be approaching a breakup point.

Carlson Investments

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Carlson Investments SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Carlson Investments may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Quantum Software and Carlson Investments

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

The idea behind Quantum Software SA and Carlson Investments SA 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.