Correlation Between Qurate Retail and Jumia Technologies
Can any of the company-specific risk be diversified away by investing in both Qurate Retail and Jumia Technologies 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 Jumia Technologies 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 Jumia Technologies AG, you can compare the effects of market volatilities on Qurate Retail and Jumia Technologies 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 Jumia Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qurate Retail and Jumia Technologies.
Diversification Opportunities for Qurate Retail and Jumia Technologies
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Qurate and Jumia is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Qurate Retail Series and Jumia Technologies AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jumia Technologies 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 Jumia Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jumia Technologies has no effect on the direction of Qurate Retail i.e., Qurate Retail and Jumia Technologies go up and down completely randomly.
Pair Corralation between Qurate Retail and Jumia Technologies
Assuming the 90 days horizon Qurate Retail Series is expected to under-perform the Jumia Technologies. In addition to that, Qurate Retail is 1.58 times more volatile than Jumia Technologies AG. It trades about -0.14 of its total potential returns per unit of risk. Jumia Technologies AG is currently generating about 0.08 per unit of volatility. If you would invest 387.00 in Jumia Technologies AG on November 9, 2024 and sell it today you would earn a total of 16.00 from holding Jumia Technologies AG or generate 4.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qurate Retail Series vs. Jumia Technologies AG
Performance |
| Timeline |
| Qurate Retail Series |
| Jumia Technologies |
Qurate Retail and Jumia Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qurate Retail and Jumia Technologies
The main advantage of trading using opposite Qurate Retail and Jumia Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qurate Retail position performs unexpectedly, Jumia Technologies 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 Jumia Technologies will offset losses from the drop in Jumia Technologies' long position.| Qurate Retail vs. Qurate Retail | Qurate Retail vs. Newegg Commerce | Qurate Retail vs. Kidpik Corp | Qurate Retail vs. Natural Health Trend |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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