Correlation Between QURATE RETAIL and GENTING SG
Can any of the company-specific risk be diversified away by investing in both QURATE RETAIL and GENTING SG 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 QURATE RETAIL and GENTING SG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between QURATE RETAIL INC and GENTING SG LTD, you can compare the effects of market volatilities on QURATE RETAIL and GENTING SG 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 QURATE RETAIL with a short position of GENTING SG. Check out your portfolio center. Please also check ongoing floating volatility patterns of QURATE RETAIL and GENTING SG.
Diversification Opportunities for QURATE RETAIL and GENTING SG
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between QURATE and GENTING is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding QURATE RETAIL INC and GENTING SG LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENTING SG LTD and QURATE RETAIL 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 QURATE RETAIL INC are associated (or correlated) with GENTING SG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENTING SG LTD has no effect on the direction of QURATE RETAIL i.e., QURATE RETAIL and GENTING SG go up and down completely randomly.
Pair Corralation between QURATE RETAIL and GENTING SG
Assuming the 90 days trading horizon QURATE RETAIL INC is expected to generate 2.28 times more return on investment than GENTING SG. However, QURATE RETAIL is 2.28 times more volatile than GENTING SG LTD. It trades about 0.0 of its potential returns per unit of risk. GENTING SG LTD is currently generating about 0.01 per unit of risk. If you would invest 494.00 in QURATE RETAIL INC on October 9, 2024 and sell it today you would lose (226.00) from holding QURATE RETAIL INC or give up 45.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
QURATE RETAIL INC vs. GENTING SG LTD
Performance |
| Timeline |
| QURATE RETAIL INC |
| GENTING SG LTD |
QURATE RETAIL and GENTING SG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QURATE RETAIL and GENTING SG
The main advantage of trading using opposite QURATE RETAIL and GENTING SG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QURATE RETAIL position performs unexpectedly, GENTING SG 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 GENTING SG will offset losses from the drop in GENTING SG's long position.| QURATE RETAIL vs. Amazon Inc | QURATE RETAIL vs. Amazon Inc | QURATE RETAIL vs. Alibaba Group Holdings | QURATE RETAIL vs. JD Inc Adr |
| GENTING SG vs. Entain Plc | GENTING SG vs. Boyd Gaming | GENTING SG vs. Superior Plus Corp | GENTING SG vs. NMI 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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