Correlation Between QURATE RETAIL and Crdit Agricole
Can any of the company-specific risk be diversified away by investing in both QURATE RETAIL and Crdit Agricole 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 Crdit Agricole 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 Crdit Agricole SA, you can compare the effects of market volatilities on QURATE RETAIL and Crdit Agricole 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 Crdit Agricole. Check out your portfolio center. Please also check ongoing floating volatility patterns of QURATE RETAIL and Crdit Agricole.
Diversification Opportunities for QURATE RETAIL and Crdit Agricole
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between QURATE and Crdit is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding QURATE RETAIL INC and Crdit Agricole SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crdit Agricole SA 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 Crdit Agricole. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crdit Agricole SA has no effect on the direction of QURATE RETAIL i.e., QURATE RETAIL and Crdit Agricole go up and down completely randomly.
Pair Corralation between QURATE RETAIL and Crdit Agricole
Assuming the 90 days trading horizon QURATE RETAIL INC is expected to under-perform the Crdit Agricole. In addition to that, QURATE RETAIL is 2.17 times more volatile than Crdit Agricole SA. It trades about -0.03 of its total potential returns per unit of risk. Crdit Agricole SA is currently generating about 0.03 per unit of volatility. If you would invest 1,304 in Crdit Agricole SA on September 14, 2024 and sell it today you would earn a total of 12.00 from holding Crdit Agricole SA or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
QURATE RETAIL INC vs. Crdit Agricole SA
Performance |
| Timeline |
| QURATE RETAIL INC |
| Crdit Agricole SA |
QURATE RETAIL and Crdit Agricole Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QURATE RETAIL and Crdit Agricole
The main advantage of trading using opposite QURATE RETAIL and Crdit Agricole positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QURATE RETAIL position performs unexpectedly, Crdit Agricole 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 Crdit Agricole will offset losses from the drop in Crdit Agricole's long position.| QURATE RETAIL vs. Tencent Holdings | QURATE RETAIL vs. Baidu Inc | QURATE RETAIL vs. Alibaba Group Holdings | QURATE RETAIL vs. BYD Company Limited |
| Crdit Agricole vs. Datadog | Crdit Agricole vs. BURLINGTON STORES | Crdit Agricole vs. QURATE RETAIL INC | Crdit Agricole vs. DATANG INTL POW |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |