Correlation Between Qurate Retail and Deutsche Post
Can any of the company-specific risk be diversified away by investing in both Qurate Retail and Deutsche Post 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 Qurate Retail and Deutsche Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qurate Retail Series and Deutsche Post AG, you can compare the effects of market volatilities on Qurate Retail and Deutsche Post 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 Qurate Retail with a short position of Deutsche Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qurate Retail and Deutsche Post.
Diversification Opportunities for Qurate Retail and Deutsche Post
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Qurate and Deutsche is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Qurate Retail Series and Deutsche Post AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Post AG and Qurate Retail 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 Qurate Retail Series are associated (or correlated) with Deutsche Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Post AG has no effect on the direction of Qurate Retail i.e., Qurate Retail and Deutsche Post go up and down completely randomly.
Pair Corralation between Qurate Retail and Deutsche Post
Assuming the 90 days trading horizon Qurate Retail is expected to generate 1.85 times less return on investment than Deutsche Post. In addition to that, Qurate Retail is 2.49 times more volatile than Deutsche Post AG. It trades about 0.02 of its total potential returns per unit of risk. Deutsche Post AG is currently generating about 0.09 per unit of volatility. If you would invest 3,365 in Deutsche Post AG on November 4, 2024 and sell it today you would earn a total of 100.00 from holding Deutsche Post AG or generate 2.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qurate Retail Series vs. Deutsche Post AG
Performance |
| Timeline |
| Qurate Retail Series |
| Deutsche Post AG |
Qurate Retail and Deutsche Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qurate Retail and Deutsche Post
The main advantage of trading using opposite Qurate Retail and Deutsche Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qurate Retail position performs unexpectedly, Deutsche Post 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 Deutsche Post will offset losses from the drop in Deutsche Post's long position.| Qurate Retail vs. Cairo Communication SpA | Qurate Retail vs. Zoom Video Communications | Qurate Retail vs. Hilton Food Group | Qurate Retail vs. Charter Communications Cl |
| Deutsche Post vs. Catalyst Media Group | Deutsche Post vs. Delta Air Lines | Deutsche Post vs. Fair Oaks Income | Deutsche Post vs. Ubisoft Entertainment |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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