Correlation Between European Wax and QEP Resources
Can any of the company-specific risk be diversified away by investing in both European Wax and QEP Resources 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 European Wax and QEP Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between European Wax Center and QEP Resources, you can compare the effects of market volatilities on European Wax and QEP Resources 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 European Wax with a short position of QEP Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of European Wax and QEP Resources.
Diversification Opportunities for European Wax and QEP Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between European and QEP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding European Wax Center and QEP Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QEP Resources and European Wax 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 European Wax Center are associated (or correlated) with QEP Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QEP Resources has no effect on the direction of European Wax i.e., European Wax and QEP Resources go up and down completely randomly.
Pair Corralation between European Wax and QEP Resources
If you would invest 604.00 in European Wax Center on October 14, 2024 and sell it today you would earn a total of 12.00 from holding European Wax Center or generate 1.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
European Wax Center vs. QEP Resources
Performance |
| Timeline |
| European Wax Center |
| QEP Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
European Wax and QEP Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with European Wax and QEP Resources
The main advantage of trading using opposite European Wax and QEP Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if European Wax position performs unexpectedly, QEP Resources 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 QEP Resources will offset losses from the drop in QEP Resources' long position.| European Wax vs. Edgewell Personal Care | European Wax vs. Inter Parfums | European Wax vs. Henkel AG Co | European Wax vs. Mannatech Incorporated |
| QEP Resources vs. Alvotech | QEP Resources vs. Sonida Senior Living | QEP Resources vs. Valneva SE ADR | QEP Resources vs. Universal Insurance Holdings |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |