Correlation Between Grieg Seafood and Qurate Retail
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and Qurate Retail 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 Grieg Seafood and Qurate Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grieg Seafood and Qurate Retail Series, you can compare the effects of market volatilities on Grieg Seafood and Qurate Retail 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 Grieg Seafood with a short position of Qurate Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and Qurate Retail.
Diversification Opportunities for Grieg Seafood and Qurate Retail
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Grieg and Qurate is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood and Qurate Retail Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qurate Retail Series and Grieg Seafood 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 Grieg Seafood are associated (or correlated) with Qurate Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qurate Retail Series has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and Qurate Retail go up and down completely randomly.
Pair Corralation between Grieg Seafood and Qurate Retail
Assuming the 90 days trading horizon Grieg Seafood is expected to generate 1.72 times less return on investment than Qurate Retail. But when comparing it to its historical volatility, Grieg Seafood is 1.38 times less risky than Qurate Retail. It trades about 0.15 of its potential returns per unit of risk. Qurate Retail Series is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 33.00 in Qurate Retail Series on October 30, 2024 and sell it today you would earn a total of 5.00 from holding Qurate Retail Series or generate 15.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grieg Seafood vs. Qurate Retail Series
Performance |
| Timeline |
| Grieg Seafood |
| Qurate Retail Series |
Grieg Seafood and Qurate Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and Qurate Retail
The main advantage of trading using opposite Grieg Seafood and Qurate Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, Qurate Retail 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 Qurate Retail will offset losses from the drop in Qurate Retail's long position.| Grieg Seafood vs. First Class Metals | Grieg Seafood vs. MTI Wireless Edge | Grieg Seafood vs. Air Products Chemicals | Grieg Seafood vs. URU Metals |
| Qurate Retail vs. Adriatic Metals | Qurate Retail vs. CNH Industrial NV | Qurate Retail vs. JB Hunt Transport | Qurate Retail vs. Europa Metals |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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