Correlation Between BB Liquidating and QYOU Media

Can any of the company-specific risk be diversified away by investing in both BB Liquidating and QYOU Media 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 BB Liquidating and QYOU Media into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BB Liquidating B and QYOU Media, you can compare the effects of market volatilities on BB Liquidating and QYOU Media 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 BB Liquidating with a short position of QYOU Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of BB Liquidating and QYOU Media.

Diversification Opportunities for BB Liquidating and QYOU Media

0.0

Correlation Coefficient

BB Liquidating  QYOU Media

Pay attention - limited upside

The 3 months correlation between BLIBQ and QYOU is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BB Liquidating B and QYOU Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QYOU Media and BB Liquidating 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 BB Liquidating B are associated (or correlated) with QYOU Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QYOU Media has no effect on the direction of BB Liquidating i.e., BB Liquidating and QYOU Media go up and down completely randomly.

Pair Corralation between BB Liquidating and QYOU Media

If you would invest  2.51  in QYOU Media on December 2, 2024 and sell it today you would lose (0.11) from holding QYOU Media or give up 4.38% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

BB Liquidating B  vs.  QYOU Media

BB Liquidating B

Risk-Adjusted Performance

Very Weak

Over the last 90 days BB Liquidating B has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental drivers, BB Liquidating is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

QYOU Media

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in QYOU Media are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, QYOU Media reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BB Liquidating and QYOU Media

The main advantage of trading using opposite BB Liquidating and QYOU Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BB Liquidating position performs unexpectedly, QYOU Media 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 QYOU Media will offset losses from the drop in QYOU Media's long position.

The idea behind BB Liquidating B and QYOU Media pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.