Correlation Between URBAN OUTFITTERS and QURATE RETAIL
Can any of the company-specific risk be diversified away by investing in both URBAN OUTFITTERS 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 URBAN OUTFITTERS and QURATE RETAIL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between URBAN OUTFITTERS and QURATE RETAIL INC, you can compare the effects of market volatilities on URBAN OUTFITTERS 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 URBAN OUTFITTERS with a short position of QURATE RETAIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of URBAN OUTFITTERS and QURATE RETAIL.
Diversification Opportunities for URBAN OUTFITTERS and QURATE RETAIL
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between URBAN and QURATE is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding URBAN OUTFITTERS and QURATE RETAIL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QURATE RETAIL INC and URBAN OUTFITTERS 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 URBAN OUTFITTERS 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 INC has no effect on the direction of URBAN OUTFITTERS i.e., URBAN OUTFITTERS and QURATE RETAIL go up and down completely randomly.
Pair Corralation between URBAN OUTFITTERS and QURATE RETAIL
Assuming the 90 days trading horizon URBAN OUTFITTERS is expected to under-perform the QURATE RETAIL. But the stock apears to be less risky and, when comparing its historical volatility, URBAN OUTFITTERS is 1.5 times less risky than QURATE RETAIL. The stock trades about -0.06 of its potential returns per unit of risk. The QURATE RETAIL INC is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 442.00 in QURATE RETAIL INC on January 14, 2025 and sell it today you would lose (42.00) from holding QURATE RETAIL INC or give up 9.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
URBAN OUTFITTERS vs. QURATE RETAIL INC
Performance |
| Timeline |
| URBAN OUTFITTERS |
| QURATE RETAIL INC |
URBAN OUTFITTERS and QURATE RETAIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with URBAN OUTFITTERS and QURATE RETAIL
The main advantage of trading using opposite URBAN OUTFITTERS and QURATE RETAIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if URBAN OUTFITTERS 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.| URBAN OUTFITTERS vs. Chuangs China Investments | URBAN OUTFITTERS vs. Cleanaway Waste Management | URBAN OUTFITTERS vs. Platinum Investment Management | URBAN OUTFITTERS vs. CHRYSALIS INVESTMENTS LTD |
| QURATE RETAIL vs. Amazon Inc | QURATE RETAIL vs. Amazon Inc | QURATE RETAIL vs. Alibaba Group Holdings | QURATE RETAIL vs. MEITUAN UNSPADR2B |
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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