Correlation Between Queste Communications and Remsense Technologies

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

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

Diversification Opportunities for Queste Communications and Remsense Technologies

-0.06

Correlation Coefficient

Queste Communications  Remsense Technologies

Good diversification

The 3 months correlation between Queste and Remsense is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Queste Communications and Remsense Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Remsense Technologies and Queste Communications 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 Queste Communications are associated (or correlated) with Remsense Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Remsense Technologies has no effect on the direction of Queste Communications i.e., Queste Communications and Remsense Technologies go up and down completely randomly.

Pair Corralation between Queste Communications and Remsense Technologies

Assuming the 90 days trading horizon Queste Communications is expected to generate 0.18 times more return on investment than Remsense Technologies. However, Queste Communications is 5.52 times less risky than Remsense Technologies. It trades about 0.0 of its potential returns per unit of risk. Remsense Technologies is currently generating about -0.1 per unit of risk. If you would invest  3.90  in Queste Communications on April 25, 2025 and sell it today you would earn a total of  0.00  from holding Queste Communications or generate 0.0% return on investment over 90 days.

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

Queste Communications  vs.  Remsense Technologies

Queste Communications

Risk-Adjusted Performance

Very Weak

Over the last 90 days Queste Communications has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Queste Communications is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Remsense Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Remsense Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's primary 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.

Pair Trading with Queste Communications and Remsense Technologies

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

The idea behind Queste Communications and Remsense Technologies 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.