Correlation Between AutoNation and Qurate Retail
Can any of the company-specific risk be diversified away by investing in both AutoNation 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 AutoNation and Qurate Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AutoNation and Qurate Retail Series, you can compare the effects of market volatilities on AutoNation 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 AutoNation with a short position of Qurate Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of AutoNation and Qurate Retail.
Diversification Opportunities for AutoNation and Qurate Retail
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AutoNation and Qurate is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding AutoNation 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 AutoNation 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 AutoNation 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 AutoNation i.e., AutoNation and Qurate Retail go up and down completely randomly.
Pair Corralation between AutoNation and Qurate Retail
Allowing for the 90-day total investment horizon AutoNation is expected to generate 0.49 times more return on investment than Qurate Retail. However, AutoNation is 2.05 times less risky than Qurate Retail. It trades about 0.05 of its potential returns per unit of risk. Qurate Retail Series is currently generating about -0.02 per unit of risk. If you would invest 16,367 in AutoNation on August 27, 2024 and sell it today you would earn a total of 1,591 from holding AutoNation or generate 9.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AutoNation vs. Qurate Retail Series
Performance |
| Timeline |
| AutoNation |
| Qurate Retail Series |
AutoNation and Qurate Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AutoNation and Qurate Retail
The main advantage of trading using opposite AutoNation and Qurate Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AutoNation 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.| AutoNation vs. Kingsway Financial Services | AutoNation vs. KAR Auction Services | AutoNation vs. Cango Inc | AutoNation vs. Vroom Inc |
| Qurate Retail vs. Qurate Retail | Qurate Retail vs. Newegg Commerce | Qurate Retail vs. Kidpik Corp | Qurate Retail vs. Natural Health Trend |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |