Correlation Between Universal Security and Quantum

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

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

Diversification Opportunities for Universal Security and Quantum

-0.75

Correlation Coefficient

Universal Security  Quantum

Pay attention - limited upside

The 3 months correlation between Universal and Quantum is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Universal Security Instruments and Quantum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quantum and Universal Security 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 Universal Security Instruments are associated (or correlated) with Quantum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantum has no effect on the direction of Universal Security i.e., Universal Security and Quantum go up and down completely randomly.

Pair Corralation between Universal Security and Quantum

Considering the 90-day investment horizon Universal Security Instruments is expected to generate 0.68 times more return on investment than Quantum. However, Universal Security Instruments is 1.48 times less risky than Quantum. It trades about 0.17 of its potential returns per unit of risk. Quantum is currently generating about -0.07 per unit of risk. If you would invest  205.00  in Universal Security Instruments on May 6, 2025 and sell it today you would earn a total of  106.00  from holding Universal Security Instruments or generate 51.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Universal Security Instruments  vs.  Quantum

Universal Security

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Universal Security Instruments are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Universal Security unveiled solid returns over the last few months and may actually be approaching a breakup point.

Quantum

Risk-Adjusted Performance

Very Weak

Over the last 90 days Quantum has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Universal Security and Quantum

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

The idea behind Universal Security Instruments and Quantum 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.