Correlation Between SM Investments and Quantum Medical

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

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

Diversification Opportunities for SM Investments and Quantum Medical

0.0

Correlation Coefficient

SM Investments  Quantum Medical

Pay attention - limited upside

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

Pair Corralation between SM Investments and Quantum Medical

If you would invest  1,550  in SM Investments on May 5, 2025 and sell it today you would earn a total of  4.00  from holding SM Investments or generate 0.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

SM Investments  vs.  Quantum Medical Transport

SM Investments

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SM Investments are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable primary indicators, SM Investments is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Quantum Medical Transport

Risk-Adjusted Performance

Very Weak

Over the last 90 days Quantum Medical Transport has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Quantum Medical is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with SM Investments and Quantum Medical

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

The idea behind SM Investments and Quantum Medical Transport 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.