Correlation Between Auction Technology and Qurate Retail
Can any of the company-specific risk be diversified away by investing in both Auction Technology 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 Auction Technology and Qurate Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auction Technology Group and Qurate Retail Series, you can compare the effects of market volatilities on Auction Technology 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 Auction Technology with a short position of Qurate Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auction Technology and Qurate Retail.
Diversification Opportunities for Auction Technology and Qurate Retail
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Auction and Qurate is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Auction Technology 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 Auction Technology 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 Auction Technology 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 Auction Technology i.e., Auction Technology and Qurate Retail go up and down completely randomly.
Pair Corralation between Auction Technology and Qurate Retail
Assuming the 90 days trading horizon Auction Technology Group is expected to generate 0.48 times more return on investment than Qurate Retail. However, Auction Technology Group is 2.1 times less risky than Qurate Retail. It trades about 0.0 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 75,300 in Auction Technology Group on September 19, 2024 and sell it today you would lose (18,000) from holding Auction Technology Group or give up 23.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auction Technology Group vs. Qurate Retail Series
Performance |
| Timeline |
| Auction Technology |
| Qurate Retail Series |
Auction Technology and Qurate Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auction Technology and Qurate Retail
The main advantage of trading using opposite Auction Technology and Qurate Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auction Technology 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.| Auction Technology vs. SupplyMe Capital PLC | Auction Technology vs. Lloyds Banking Group | Auction Technology vs. Premier African Minerals | Auction Technology vs. SANTANDER UK 8 |
| Qurate Retail vs. Samsung Electronics Co | Qurate Retail vs. Samsung Electronics Co | Qurate Retail vs. Hyundai Motor | Qurate Retail vs. Reliance Industries Ltd |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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