Correlation Between Cricut and Quantum

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

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

Diversification Opportunities for Cricut and Quantum

-0.16

Correlation Coefficient

Cricut  Quantum

Good diversification

The 3 months correlation between Cricut and Quantum is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Cricut Inc and Quantum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quantum and Cricut 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 Cricut Inc are associated (or correlated) with Quantum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantum has no effect on the direction of Cricut i.e., Cricut and Quantum go up and down completely randomly.

Pair Corralation between Cricut and Quantum

Given the investment horizon of 90 days Cricut Inc is expected to generate 0.56 times more return on investment than Quantum. However, Cricut Inc is 1.77 times less risky than Quantum. It trades about 0.03 of its potential returns per unit of risk. Quantum is currently generating about -0.07 per unit of risk. If you would invest  447.00  in Cricut Inc on May 6, 2025 and sell it today you would earn a total of  17.00  from holding Cricut Inc or generate 3.8% return on investment over 90 days.

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

Cricut Inc  vs.  Quantum

Cricut Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cricut Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental indicators, Cricut may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Quantum

Risk-Adjusted Performance

Very Weak

Over the last 90 days Quantum has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Cricut and Quantum

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

The idea behind Cricut Inc and Quantum 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.

Check out your portfolio center.

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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.