Correlation Between Beldex and Qtum

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

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

Diversification Opportunities for Beldex and Qtum

0.73

Correlation Coefficient

Beldex  Qtum

Poor diversification

The 3 months correlation between Beldex and Qtum is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Beldex and Qtum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qtum and Beldex 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 Beldex are associated (or correlated) with Qtum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qtum has no effect on the direction of Beldex i.e., Beldex and Qtum go up and down completely randomly.

Pair Corralation between Beldex and Qtum

Assuming the 90 days trading horizon Beldex is expected to under-perform the Qtum. But the crypto coin apears to be less risky and, when comparing its historical volatility, Beldex is 2.31 times less risky than Qtum. The crypto coin trades about -0.2 of its potential returns per unit of risk. The Qtum is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest  221.00  in Qtum on January 13, 2025 and sell it today you would lose (19.00) from holding Qtum or give up 8.6% of portfolio value over 90 days.

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

Beldex  vs.  Qtum

Beldex

Risk-Adjusted Performance

Very Weak

Over the last 90 days Beldex has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's basic indicators remain rather sound which may send shares a bit higher in May 2025. The latest tumult may also be a sign of longer-term up-swing for Beldex shareholders.

Qtum

Risk-Adjusted Performance

Very Weak

Over the last 90 days Qtum has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in May 2025. The latest tumult may also be a sign of longer-term up-swing for Qtum shareholders.

Pair Trading with Beldex and Qtum

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

The idea behind Beldex and Qtum 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..