Correlation Between Cemtrex and QuickLogic

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

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

Diversification Opportunities for Cemtrex and QuickLogic

-0.11

Correlation Coefficient

Cemtrex  QuickLogic

Good diversification

The 3 months correlation between Cemtrex and QuickLogic is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Cemtrex and QuickLogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QuickLogic and Cemtrex 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 Cemtrex are associated (or correlated) with QuickLogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QuickLogic has no effect on the direction of Cemtrex i.e., Cemtrex and QuickLogic go up and down completely randomly.

Pair Corralation between Cemtrex and QuickLogic

Given the investment horizon of 90 days Cemtrex is expected to generate 1.97 times more return on investment than QuickLogic. However, Cemtrex is 1.97 times more volatile than QuickLogic. It trades about -0.01 of its potential returns per unit of risk. QuickLogic is currently generating about -0.03 per unit of risk. If you would invest  171.00  in Cemtrex on May 13, 2025 and sell it today you would lose (45.00) from holding Cemtrex or give up 26.32% of portfolio value over 90 days.

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

Cemtrex  vs.  QuickLogic

Cemtrex

Risk-Adjusted Performance

Weakest

Over the last 90 days Cemtrex has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Cemtrex is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

QuickLogic

Risk-Adjusted Performance

Weakest

Over the last 90 days QuickLogic has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's forward indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Cemtrex and QuickLogic

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

The idea behind Cemtrex and QuickLogic 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .