Correlation Between Qurate Retail and Chimera Investment
Can any of the company-specific risk be diversified away by investing in both Qurate Retail and Chimera Investment 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 Chimera Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qurate Retail and Chimera Investment, you can compare the effects of market volatilities on Qurate Retail and Chimera Investment 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 Chimera Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qurate Retail and Chimera Investment.
Diversification Opportunities for Qurate Retail and Chimera Investment
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Qurate and Chimera is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Qurate Retail and Chimera Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chimera Investment 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 are associated (or correlated) with Chimera Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chimera Investment has no effect on the direction of Qurate Retail i.e., Qurate Retail and Chimera Investment go up and down completely randomly.
Pair Corralation between Qurate Retail and Chimera Investment
Assuming the 90 days horizon Qurate Retail is expected to generate 5.81 times more return on investment than Chimera Investment. However, Qurate Retail is 5.81 times more volatile than Chimera Investment. It trades about 0.29 of its potential returns per unit of risk. Chimera Investment is currently generating about 0.02 per unit of risk. If you would invest 3,814 in Qurate Retail on August 30, 2024 and sell it today you would earn a total of 574.00 from holding Qurate Retail or generate 15.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qurate Retail vs. Chimera Investment
Performance |
| Timeline |
| Qurate Retail |
| Chimera Investment |
Qurate Retail and Chimera Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qurate Retail and Chimera Investment
The main advantage of trading using opposite Qurate Retail and Chimera Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qurate Retail position performs unexpectedly, Chimera Investment 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 Chimera Investment will offset losses from the drop in Chimera Investment's long position.| Qurate Retail vs. Qurate Retail Series | Qurate Retail vs. Qurate Retail Series | Qurate Retail vs. RLJ Lodging Trust | Qurate Retail vs. Liberty Broadband Srs |
| Chimera Investment vs. MFA Financial | Chimera Investment vs. Two Harbors Investment | Chimera Investment vs. Invesco Mortgage Capital | Chimera Investment vs. Chimera Investment |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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