Correlation Between Q2M Managementberatu and Parkson Retail
Can any of the company-specific risk be diversified away by investing in both Q2M Managementberatu and Parkson 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 Q2M Managementberatu and Parkson Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Q2M Managementberatung AG and Parkson Retail Group, you can compare the effects of market volatilities on Q2M Managementberatu and Parkson 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 Q2M Managementberatu with a short position of Parkson Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Q2M Managementberatu and Parkson Retail.
Diversification Opportunities for Q2M Managementberatu and Parkson Retail
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Q2M and Parkson is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Q2M Managementberatung AG and Parkson Retail Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parkson Retail Group and Q2M Managementberatu 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 Q2M Managementberatung AG are associated (or correlated) with Parkson Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parkson Retail Group has no effect on the direction of Q2M Managementberatu i.e., Q2M Managementberatu and Parkson Retail go up and down completely randomly.
Pair Corralation between Q2M Managementberatu and Parkson Retail
Assuming the 90 days trading horizon Q2M Managementberatu is expected to generate 18495.0 times less return on investment than Parkson Retail. But when comparing it to its historical volatility, Q2M Managementberatung AG is 166.09 times less risky than Parkson Retail. It trades about 0.0 of its potential returns per unit of risk. Parkson Retail Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 0.90 in Parkson Retail Group on September 2, 2024 and sell it today you would lose (0.10) from holding Parkson Retail Group or give up 11.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Q2M Managementberatung AG vs. Parkson Retail Group
Performance |
| Timeline |
| Q2M Managementberatung |
| Parkson Retail Group |
Q2M Managementberatu and Parkson Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Q2M Managementberatu and Parkson Retail
The main advantage of trading using opposite Q2M Managementberatu and Parkson Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Q2M Managementberatu position performs unexpectedly, Parkson 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 Parkson Retail will offset losses from the drop in Parkson Retail's long position.| Q2M Managementberatu vs. Superior Plus Corp | Q2M Managementberatu vs. NMI Holdings | Q2M Managementberatu vs. Origin Agritech | Q2M Managementberatu vs. SIVERS SEMICONDUCTORS AB |
| Parkson Retail vs. Dillards | Parkson Retail vs. RYOHIN UNSPADR1 | Parkson Retail vs. Superior Plus Corp | Parkson Retail 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |