Correlation Between Stillfront Group and Qleanair Holding

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

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

Diversification Opportunities for Stillfront Group and Qleanair Holding

0.52

Correlation Coefficient

Stillfront Group  Qleanair Holding

Very weak diversification

The 3 months correlation between Stillfront and Qleanair is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Stillfront Group AB and Qleanair Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qleanair Holding and Stillfront Group 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 Stillfront Group AB are associated (or correlated) with Qleanair Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qleanair Holding has no effect on the direction of Stillfront Group i.e., Stillfront Group and Qleanair Holding go up and down completely randomly.

Pair Corralation between Stillfront Group and Qleanair Holding

Assuming the 90 days horizon Stillfront Group AB is expected to generate 1.28 times more return on investment than Qleanair Holding. However, Stillfront Group is 1.28 times more volatile than Qleanair Holding AB. It trades about 0.18 of its potential returns per unit of risk. Qleanair Holding AB is currently generating about 0.22 per unit of risk. If you would invest  445.00  in Stillfront Group AB on April 22, 2025 and sell it today you would earn a total of  196.00  from holding Stillfront Group AB or generate 44.04% return on investment over 90 days.

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

Stillfront Group AB  vs.  Qleanair Holding AB

Stillfront Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Stillfront Group AB are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Stillfront Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

Qleanair Holding

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Qleanair Holding AB are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Qleanair Holding unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Stillfront Group and Qleanair Holding

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

The idea behind Stillfront Group AB and Qleanair Holding 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.

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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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.