Correlation Between Alta Global and Qurate Retail

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

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

Diversification Opportunities for Alta Global and Qurate Retail

-0.21

Correlation Coefficient

Alta Global  Qurate Retail

Very good diversification

The 3 months correlation between Alta and Qurate is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Alta Global Group and Qurate Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qurate Retail and Alta Global 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 Alta Global Group 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 Alta Global i.e., Alta Global and Qurate Retail go up and down completely randomly.

Pair Corralation between Alta Global and Qurate Retail

Considering the 90-day investment horizon Alta Global Group is expected to under-perform the Qurate Retail. In addition to that, Alta Global is 3.16 times more volatile than Qurate Retail. It trades about -0.05 of its total potential returns per unit of risk. Qurate Retail is currently generating about 0.0 per unit of volatility. If you would invest  2,937  in Qurate Retail on December 27, 2024 and sell it today you would lose (44.00) from holding Qurate Retail or give up 1.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	91.8%
Values	Daily Returns

Alta Global Group  vs.  Qurate Retail

Alta Global Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Alta Global Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's primary indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

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 Alta Global and Qurate Retail

The main advantage of trading using opposite Alta Global and Qurate Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alta Global 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 Alta Global Group 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.