Correlation Between Qurate Retail and IPower
Can any of the company-specific risk be diversified away by investing in both Qurate Retail and IPower 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 IPower into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qurate Retail and iPower Inc, you can compare the effects of market volatilities on Qurate Retail and IPower 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 IPower. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qurate Retail and IPower.
Diversification Opportunities for Qurate Retail and IPower
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Qurate and IPower is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Qurate Retail and iPower Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iPower Inc 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 IPower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iPower Inc has no effect on the direction of Qurate Retail i.e., Qurate Retail and IPower go up and down completely randomly.
Pair Corralation between Qurate Retail and IPower
Assuming the 90 days horizon Qurate Retail is expected to generate 0.2 times more return on investment than IPower. However, Qurate Retail is 4.9 times less risky than IPower. It trades about 0.16 of its potential returns per unit of risk. iPower Inc is currently generating about -0.29 per unit of risk. If you would invest 3,876 in Qurate Retail on August 27, 2024 and sell it today you would earn a total of 280.00 from holding Qurate Retail or generate 7.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qurate Retail vs. iPower Inc
Performance |
| Timeline |
| Qurate Retail |
| iPower Inc |
Qurate Retail and IPower Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qurate Retail and IPower
The main advantage of trading using opposite Qurate Retail and IPower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qurate Retail position performs unexpectedly, IPower 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 IPower will offset losses from the drop in IPower'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 |
| IPower vs. Hour Loop | IPower vs. Qurate Retail Series | IPower vs. MOGU Inc | IPower vs. Meiwu Technology Co |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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