Correlation Between Fortinet and Qualys
Can any of the company-specific risk be diversified away by investing in both Fortinet and Qualys 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 Fortinet and Qualys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortinet and Qualys Inc, you can compare the effects of market volatilities on Fortinet and Qualys 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 Fortinet with a short position of Qualys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortinet and Qualys.
Diversification Opportunities for Fortinet and Qualys
Average diversification
The 3 months correlation between Fortinet and Qualys is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Fortinet and Qualys Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qualys Inc and Fortinet 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 Fortinet are associated (or correlated) with Qualys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qualys Inc has no effect on the direction of Fortinet i.e., Fortinet and Qualys go up and down completely randomly.
Pair Corralation between Fortinet and Qualys
Given the investment horizon of 90 days Fortinet is expected to under-perform the Qualys. In addition to that, Fortinet is 1.32 times more volatile than Qualys Inc. It trades about -0.07 of its total potential returns per unit of risk. Qualys Inc is currently generating about 0.03 per unit of volatility. If you would invest 12,816 in Qualys Inc on May 4, 2025 and sell it today you would earn a total of 237.00 from holding Qualys Inc or generate 1.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Fortinet vs. Qualys Inc
Performance |
Timeline |
Fortinet |
Qualys Inc |
Fortinet and Qualys Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fortinet and Qualys
The main advantage of trading using opposite Fortinet and Qualys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortinet position performs unexpectedly, Qualys 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 Qualys will offset losses from the drop in Qualys' long position.Fortinet vs. Zscaler | Fortinet vs. Palo Alto Networks | Fortinet vs. Crowdstrike Holdings | Fortinet vs. Okta Inc |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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