Correlation Between Secoo Holding and Qurate Retail
Can any of the company-specific risk be diversified away by investing in both Secoo Holding and Qurate 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 Secoo Holding and Qurate Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Secoo Holding and Qurate Retail Series, you can compare the effects of market volatilities on Secoo Holding and Qurate 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 Secoo Holding with a short position of Qurate Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Secoo Holding and Qurate Retail.
Diversification Opportunities for Secoo Holding and Qurate Retail
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Secoo and Qurate is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Secoo Holding and Qurate Retail Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qurate Retail Series and Secoo Holding 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 Secoo Holding are associated (or correlated) with Qurate Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qurate Retail Series has no effect on the direction of Secoo Holding i.e., Secoo Holding and Qurate Retail go up and down completely randomly.
Pair Corralation between Secoo Holding and Qurate Retail
If you would invest 83.00 in Secoo Holding on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Secoo Holding or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Secoo Holding vs. Qurate Retail Series
Performance |
| Timeline |
| Secoo Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Qurate Retail Series |
Secoo Holding and Qurate Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Secoo Holding and Qurate Retail
The main advantage of trading using opposite Secoo Holding and Qurate Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Secoo Holding position performs unexpectedly, Qurate 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 Qurate Retail will offset losses from the drop in Qurate Retail's long position.| Secoo Holding vs. Kidpik Corp | Secoo Holding vs. Qurate Retail Series | Secoo Holding vs. Natural Health Trend | Secoo Holding vs. Liquidity Services |
| Qurate Retail vs. Qurate Retail | Qurate Retail vs. Hour Loop | Qurate Retail vs. Kidpik Corp | Qurate Retail 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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