Correlation Between ISign Media and Quebecor

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

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

Diversification Opportunities for ISign Media and Quebecor

0.29

Correlation Coefficient

ISign Media  Quebecor

Modest diversification

The 3 months correlation between ISign and Quebecor is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding iSign Media Solutions and Quebecor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quebecor and ISign Media 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 iSign Media Solutions are associated (or correlated) with Quebecor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quebecor has no effect on the direction of ISign Media i.e., ISign Media and Quebecor go up and down completely randomly.

Pair Corralation between ISign Media and Quebecor

Assuming the 90 days horizon ISign Media is expected to generate 1.71 times less return on investment than Quebecor. But when comparing it to its historical volatility, iSign Media Solutions is 6.15 times less risky than Quebecor. It trades about 0.22 of its potential returns per unit of risk. Quebecor is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  3,183  in Quebecor on September 15, 2024 and sell it today you would earn a total of  117.00  from holding Quebecor or generate 3.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

iSign Media Solutions  vs.  Quebecor

iSign Media Solutions

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in iSign Media Solutions are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, ISign Media is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Quebecor

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with ISign Media and Quebecor

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

The idea behind iSign Media Solutions and Quebecor 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.