Correlation Between Vecima Networks and Questor Technology

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

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

Diversification Opportunities for Vecima Networks and Questor Technology

0.24

Correlation Coefficient

Vecima Networks  Questor Technology

Modest diversification

The 3 months correlation between Vecima and Questor is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Vecima Networks and Questor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Questor Technology and Vecima Networks 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 Vecima Networks are associated (or correlated) with Questor Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Questor Technology has no effect on the direction of Vecima Networks i.e., Vecima Networks and Questor Technology go up and down completely randomly.

Pair Corralation between Vecima Networks and Questor Technology

Assuming the 90 days trading horizon Vecima Networks is expected to generate 2.48 times less return on investment than Questor Technology. But when comparing it to its historical volatility, Vecima Networks is 2.21 times less risky than Questor Technology. It trades about 0.16 of its potential returns per unit of risk. Questor Technology is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  27.00  in Questor Technology on April 22, 2025 and sell it today you would earn a total of  20.00  from holding Questor Technology or generate 74.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Vecima Networks  vs.  Questor Technology

Vecima Networks

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vecima Networks are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating primary indicators, Vecima Networks displayed solid returns over the last few months and may actually be approaching a breakup point.

Questor Technology

Risk-Adjusted Performance

Good

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

Pair Trading with Vecima Networks and Questor Technology

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

The idea behind Vecima Networks and Questor Technology 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.