Correlation Between Ajinomoto and Arqit Quantum

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Can any of the company-specific risk be diversified away by investing in both Ajinomoto and Arqit 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 Ajinomoto and Arqit Quantum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ajinomoto Co and Arqit Quantum, you can compare the effects of market volatilities on Ajinomoto and Arqit 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 Ajinomoto with a short position of Arqit Quantum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ajinomoto and Arqit Quantum.

Diversification Opportunities for Ajinomoto and Arqit Quantum

  Correlation Coefficient

Poor diversification

The 1 month correlation between Ajinomoto and Arqit is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Ajinomoto Co and Arqit Quantum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arqit Quantum and Ajinomoto 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 Ajinomoto Co are associated (or correlated) with Arqit Quantum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arqit Quantum has no effect on the direction of Ajinomoto i.e., Ajinomoto and Arqit Quantum go up and down completely randomly.

Pair Corralation between Ajinomoto and Arqit Quantum

Assuming the 90 days horizon Ajinomoto Co is expected to generate 0.19 times more return on investment than Arqit Quantum. However, Ajinomoto Co is 5.16 times less risky than Arqit Quantum. It trades about 0.01 of its potential returns per unit of risk. Arqit Quantum is currently generating about -0.02 per unit of risk. If you would invest  2,885  in Ajinomoto Co on September 3, 2022 and sell it today you would earn a total of  43.00  from holding Ajinomoto Co or generate 1.49% return on investment over 90 days.
Time Period1 Month [change]
DirectionMoves Together 
ValuesDaily Returns

Ajinomoto Co  vs.  Arqit Quantum

 Performance (%) 
Ajinomoto Performance
16 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Ajinomoto Co are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Ajinomoto exhibited solid returns over the last few months and may actually be approaching a breakup point.

Ajinomoto Price Channel

Arqit Quantum 
Arqit Performance
17 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Arqit Quantum are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Arqit Quantum displayed solid returns over the last few months and may actually be approaching a breakup point.

Arqit Price Channel

Ajinomoto and Arqit Quantum Volatility Contrast

   Predicted Return Density   

Pair Trading with Ajinomoto and Arqit Quantum

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

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