Correlation Between DSS and Qurate Retail

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

By analyzing existing cross correlation between DSS Inc and Qurate Retail, you can compare the effects of market volatilities on DSS 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 DSS with a short position of Qurate Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSS and Qurate Retail.

Diversification Opportunities for DSS and Qurate Retail

-0.18

Correlation Coefficient

DSS  Qurate Retail

Good diversification

The 3 months correlation between DSS and Qurate is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding DSS Inc and Qurate Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qurate Retail and DSS 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 DSS Inc 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 has no effect on the direction of DSS i.e., DSS and Qurate Retail go up and down completely randomly.

Pair Corralation between DSS and Qurate Retail

Considering the 90-day investment horizon DSS Inc is expected to generate 1.64 times more return on investment than Qurate Retail. However, DSS is 1.64 times more volatile than Qurate Retail. It trades about 0.04 of its potential returns per unit of risk. Qurate Retail is currently generating about 0.0 per unit of risk. If you would invest  90.00  in DSS Inc on December 27, 2024 and sell it today you would earn a total of  5.00  from holding DSS Inc or generate 5.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	93.33%
Values	Daily Returns

DSS Inc  vs.  Qurate Retail

DSS Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in DSS Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, DSS may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Qurate Retail

Risk-Adjusted Performance

Very Weak

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

Pair Trading with DSS and Qurate Retail

The main advantage of trading using opposite DSS and Qurate Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSS 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.

The idea behind DSS Inc and Qurate Retail 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.