Correlation Between Quantum Computing and InterDigital

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

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

Diversification Opportunities for Quantum Computing and InterDigital

0.66

Correlation Coefficient

Quantum Computing  InterDigital

Poor diversification

The 3 months correlation between Quantum and InterDigital is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Quantum Computing and InterDigital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InterDigital and Quantum Computing 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 Quantum Computing are associated (or correlated) with InterDigital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InterDigital has no effect on the direction of Quantum Computing i.e., Quantum Computing and InterDigital go up and down completely randomly.

Pair Corralation between Quantum Computing and InterDigital

Given the investment horizon of 90 days Quantum Computing is expected to generate 2.28 times less return on investment than InterDigital. In addition to that, Quantum Computing is 2.53 times more volatile than InterDigital. It trades about 0.05 of its total potential returns per unit of risk. InterDigital is currently generating about 0.3 per unit of volatility. If you would invest  22,599  in InterDigital on July 22, 2025 and sell it today you would earn a total of  14,086  from holding InterDigital or generate 62.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.46%
Values	Daily Returns

Quantum Computing  vs.  InterDigital

Quantum Computing

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Quantum Computing are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental drivers, Quantum Computing unveiled solid returns over the last few months and may actually be approaching a breakup point.

InterDigital

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in InterDigital are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, InterDigital exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Quantum Computing and InterDigital

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

The idea behind Quantum Computing and InterDigital 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.