Correlation Between Revenio and Qt Group

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

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

Diversification Opportunities for Revenio and Qt Group

-0.47

Correlation Coefficient

Revenio  Qt Group

Very good diversification

The 3 months correlation between Revenio and QTCOM is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Revenio Group and Qt Group Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qt Group Oyj and Revenio 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 Revenio Group are associated (or correlated) with Qt Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qt Group Oyj has no effect on the direction of Revenio i.e., Revenio and Qt Group go up and down completely randomly.

Pair Corralation between Revenio and Qt Group

Assuming the 90 days trading horizon Revenio Group is expected to generate 1.21 times more return on investment than Qt Group. However, Revenio is 1.21 times more volatile than Qt Group Oyj. It trades about 0.1 of its potential returns per unit of risk. Qt Group Oyj is currently generating about 0.05 per unit of risk. If you would invest  2,360  in Revenio Group on April 24, 2025 and sell it today you would earn a total of  335.00  from holding Revenio Group or generate 14.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Revenio Group  vs.  Qt Group Oyj

Revenio Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Revenio Group are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent technical indicators, Revenio demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Qt Group Oyj

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Qt Group Oyj are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong technical indicators, Qt Group is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Revenio and Qt Group

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

The idea behind Revenio Group and Qt Group Oyj 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.