Correlation Between Arqit Quantum and GSI Technology

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

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

Diversification Opportunities for Arqit Quantum and GSI Technology

-0.61

Correlation Coefficient

Arqit Quantum  GSI Technology

Excellent diversification

The 3 months correlation between Arqit and GSI is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Arqit Quantum Warrants and GSI Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GSI Technology and Arqit Quantum 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 Arqit Quantum Warrants are associated (or correlated) with GSI Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GSI Technology has no effect on the direction of Arqit Quantum i.e., Arqit Quantum and GSI Technology go up and down completely randomly.

Pair Corralation between Arqit Quantum and GSI Technology

Assuming the 90 days horizon Arqit Quantum Warrants is expected to under-perform the GSI Technology. In addition to that, Arqit Quantum is 5.37 times more volatile than GSI Technology. It trades about -0.02 of its total potential returns per unit of risk. GSI Technology is currently generating about 0.07 per unit of volatility. If you would invest  340.00  in GSI Technology on May 6, 2025 and sell it today you would earn a total of  46.50  from holding GSI Technology or generate 13.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Arqit Quantum Warrants  vs.  GSI Technology

Arqit Quantum Warrants

Risk-Adjusted Performance

Very Weak

Over the last 90 days Arqit Quantum Warrants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

GSI Technology

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in GSI Technology are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak forward indicators, GSI Technology unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Arqit Quantum and GSI Technology

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

The idea behind Arqit Quantum Warrants and GSI 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.