Correlation Between Quantumscape Corp and Lasertec

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

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

Diversification Opportunities for Quantumscape Corp and Lasertec

0.8

Correlation Coefficient

Quantumscape Corp  Lasertec

Very poor diversification

The 3 months correlation between Quantumscape and Lasertec is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Quantumscape Corp and Lasertec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lasertec and Quantumscape Corp 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 Quantumscape Corp are associated (or correlated) with Lasertec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lasertec has no effect on the direction of Quantumscape Corp i.e., Quantumscape Corp and Lasertec go up and down completely randomly.

Pair Corralation between Quantumscape Corp and Lasertec

Allowing for the 90-day total investment horizon Quantumscape Corp is expected to generate 2.2 times more return on investment than Lasertec. However, Quantumscape Corp is 2.2 times more volatile than Lasertec. It trades about 0.2 of its potential returns per unit of risk. Lasertec is currently generating about -0.02 per unit of risk. If you would invest  397.00  in Quantumscape Corp on May 17, 2025 and sell it today you would earn a total of  512.00  from holding Quantumscape Corp or generate 128.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	96.83%
Values	Daily Returns

Quantumscape Corp  vs.  Lasertec

Quantumscape Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Quantumscape Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Quantumscape Corp unveiled solid returns over the last few months and may actually be approaching a breakup point.

Lasertec

Risk-Adjusted Performance

Weakest

Over the last 90 days Lasertec has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Lasertec is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Quantumscape Corp and Lasertec

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

The idea behind Quantumscape Corp and Lasertec 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.