Correlation Between Southern Concepts and Quest Products

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

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

Diversification Opportunities for Southern Concepts and Quest Products

0.0

Correlation Coefficient

Southern Concepts  Quest Products

Pay attention - limited upside

The 3 months correlation between Southern and Quest is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Southern Concepts Restaurant and Quest Products Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quest Products Corp and Southern Concepts 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 Southern Concepts Restaurant are associated (or correlated) with Quest Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quest Products Corp has no effect on the direction of Southern Concepts i.e., Southern Concepts and Quest Products go up and down completely randomly.

Pair Corralation between Southern Concepts and Quest Products

If you would invest  9.46  in Quest Products Corp on May 1, 2025 and sell it today you would earn a total of  1.54  from holding Quest Products Corp or generate 16.28% return on investment over 90 days.

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

Southern Concepts Restaurant  vs.  Quest Products Corp

Southern Concepts

Risk-Adjusted Performance

Very Weak

Over the last 90 days Southern Concepts Restaurant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental drivers, Southern Concepts is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Quest Products Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Quest Products Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Quest Products exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Southern Concepts and Quest Products

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

The idea behind Southern Concepts Restaurant and Quest Products Corp 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..