Correlation Between QURATE RETAIL and KGHM Polska
Can any of the company-specific risk be diversified away by investing in both QURATE RETAIL and KGHM Polska 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 KGHM Polska into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between QURATE RETAIL INC and KGHM Polska Miedz, you can compare the effects of market volatilities on QURATE RETAIL and KGHM Polska 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 KGHM Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of QURATE RETAIL and KGHM Polska.
Diversification Opportunities for QURATE RETAIL and KGHM Polska
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between QURATE and KGHM is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding QURATE RETAIL INC and KGHM Polska Miedz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KGHM Polska Miedz 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 INC are associated (or correlated) with KGHM Polska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KGHM Polska Miedz has no effect on the direction of QURATE RETAIL i.e., QURATE RETAIL and KGHM Polska go up and down completely randomly.
Pair Corralation between QURATE RETAIL and KGHM Polska
Assuming the 90 days trading horizon QURATE RETAIL INC is expected to generate 2.5 times more return on investment than KGHM Polska. However, QURATE RETAIL is 2.5 times more volatile than KGHM Polska Miedz. It trades about 0.05 of its potential returns per unit of risk. KGHM Polska Miedz is currently generating about -0.17 per unit of risk. If you would invest 292.00 in QURATE RETAIL INC on September 26, 2024 and sell it today you would earn a total of 10.00 from holding QURATE RETAIL INC or generate 3.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
QURATE RETAIL INC vs. KGHM Polska Miedz
Performance |
Timeline |
QURATE RETAIL INC |
KGHM Polska Miedz |
QURATE RETAIL and KGHM Polska Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with QURATE RETAIL and KGHM Polska
The main advantage of trading using opposite QURATE RETAIL and KGHM Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QURATE RETAIL position performs unexpectedly, KGHM Polska 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 KGHM Polska will offset losses from the drop in KGHM Polska's long position.QURATE RETAIL vs. Amazon Inc | QURATE RETAIL vs. Amazon Inc | QURATE RETAIL vs. MEITUAN UNSPADR2B | QURATE RETAIL vs. Pinduoduo |
KGHM Polska vs. Micron Technology | KGHM Polska vs. SOLSTAD OFFSHORE NK | KGHM Polska vs. Alfa Financial Software | KGHM Polska vs. Check Point Software |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |