Correlation Between Qurate Retail and LPKF Laser
Can any of the company-specific risk be diversified away by investing in both Qurate Retail and LPKF Laser 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 LPKF Laser 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 LPKF Laser Electronics, you can compare the effects of market volatilities on Qurate Retail and LPKF Laser 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 LPKF Laser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qurate Retail and LPKF Laser.
Diversification Opportunities for Qurate Retail and LPKF Laser
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Qurate and LPKF is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Qurate Retail Series and LPKF Laser Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LPKF Laser Electronics 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 LPKF Laser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LPKF Laser Electronics has no effect on the direction of Qurate Retail i.e., Qurate Retail and LPKF Laser go up and down completely randomly.
Pair Corralation between Qurate Retail and LPKF Laser
Assuming the 90 days trading horizon Qurate Retail Series is expected to under-perform the LPKF Laser. In addition to that, Qurate Retail is 9.2 times more volatile than LPKF Laser Electronics. It trades about -0.11 of its total potential returns per unit of risk. LPKF Laser Electronics is currently generating about -0.06 per unit of volatility. If you would invest 868.00 in LPKF Laser Electronics on September 2, 2024 and sell it today you would lose (8.00) from holding LPKF Laser Electronics or give up 0.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qurate Retail Series vs. LPKF Laser Electronics
Performance |
| Timeline |
| Qurate Retail Series |
| LPKF Laser Electronics |
Qurate Retail and LPKF Laser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qurate Retail and LPKF Laser
The main advantage of trading using opposite Qurate Retail and LPKF Laser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qurate Retail position performs unexpectedly, LPKF Laser 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 LPKF Laser will offset losses from the drop in LPKF Laser's long position.| Qurate Retail vs. Medical Properties Trust | Qurate Retail vs. Intuitive Investments Group | Qurate Retail vs. Smithson Investment Trust | Qurate Retail vs. Livermore Investments Group |
| LPKF Laser vs. Uniper SE | LPKF Laser vs. Mulberry Group PLC | LPKF Laser vs. London Security Plc | LPKF Laser vs. Triad Group PLC |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stocks Directory Find actively traded stocks across global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |