Correlation Between Qurate Retail and Secoo Holding
Can any of the company-specific risk be diversified away by investing in both Qurate Retail and Secoo Holding 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 Secoo Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qurate Retail Series and Secoo Holding, you can compare the effects of market volatilities on Qurate Retail and Secoo Holding 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 Secoo Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qurate Retail and Secoo Holding.
Diversification Opportunities for Qurate Retail and Secoo Holding
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Qurate and Secoo is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Qurate Retail Series and Secoo Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Secoo Holding 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 Series are associated (or correlated) with Secoo Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Secoo Holding has no effect on the direction of Qurate Retail i.e., Qurate Retail and Secoo Holding go up and down completely randomly.
Pair Corralation between Qurate Retail and Secoo Holding
Assuming the 90 days horizon Qurate Retail Series is expected to under-perform the Secoo Holding. But the stock apears to be less risky and, when comparing its historical volatility, Qurate Retail Series is 2.82 times less risky than Secoo Holding. The stock trades about -0.02 of its potential returns per unit of risk. The Secoo Holding is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 178.00 in Secoo Holding on August 27, 2024 and sell it today you would lose (95.00) from holding Secoo Holding or give up 53.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.85% |
| Values | Daily Returns |
Qurate Retail Series vs. Secoo Holding
Performance |
| Timeline |
| Qurate Retail Series |
| Secoo Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Qurate Retail and Secoo Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qurate Retail and Secoo Holding
The main advantage of trading using opposite Qurate Retail and Secoo Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qurate Retail position performs unexpectedly, Secoo Holding 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 Secoo Holding will offset losses from the drop in Secoo Holding's long position.| Qurate Retail vs. Qurate Retail | Qurate Retail vs. Hour Loop | Qurate Retail vs. Kidpik Corp | Qurate Retail vs. Liquidity Services |
| Secoo Holding vs. Kidpik Corp | Secoo Holding vs. Qurate Retail Series | Secoo Holding vs. Natural Health Trend | Secoo Holding vs. Liquidity Services |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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