Correlation Between Bell Food and Qurate Retail
Can any of the company-specific risk be diversified away by investing in both Bell Food 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 Bell Food and Qurate Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bell Food Group and Qurate Retail Series, you can compare the effects of market volatilities on Bell Food 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 Bell Food with a short position of Qurate Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bell Food and Qurate Retail.
Diversification Opportunities for Bell Food and Qurate Retail
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bell and Qurate is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Bell Food Group 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 Bell Food 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 Bell Food Group 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 Bell Food i.e., Bell Food and Qurate Retail go up and down completely randomly.
Pair Corralation between Bell Food and Qurate Retail
Assuming the 90 days trading horizon Bell Food Group is expected to generate 0.08 times more return on investment than Qurate Retail. However, Bell Food Group is 12.67 times less risky than Qurate Retail. It trades about 0.16 of its potential returns per unit of risk. Qurate Retail Series is currently generating about -0.19 per unit of risk. If you would invest 26,500 in Bell Food Group on August 30, 2024 and sell it today you would earn a total of 400.00 from holding Bell Food Group or generate 1.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bell Food Group vs. Qurate Retail Series
Performance |
| Timeline |
| Bell Food Group |
| Qurate Retail Series |
Bell Food and Qurate Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bell Food and Qurate Retail
The main advantage of trading using opposite Bell Food and Qurate Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bell Food 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.| Bell Food vs. Tungsten West PLC | Bell Food vs. Argo Group Limited | Bell Food vs. Hardide PLC | Bell Food vs. Versarien PLC |
| Qurate Retail vs. Tungsten West PLC | Qurate Retail vs. Argo Group Limited | Qurate Retail vs. Hardide PLC | Qurate Retail vs. Versarien 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.
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