Correlation Between Qurate Retail and 1StdibsCom

Can any of the company-specific risk be diversified away by investing in both Qurate Retail and 1StdibsCom 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 1StdibsCom into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Qurate Retail Series and 1StdibsCom, you can compare the effects of market volatilities on Qurate Retail and 1StdibsCom 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 1StdibsCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qurate Retail and 1StdibsCom.

Diversification Opportunities for Qurate Retail and 1StdibsCom

0.16

Correlation Coefficient

Qurate Retail  1StdibsCom

Average diversification

The 3 months correlation between Qurate and 1StdibsCom is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Qurate Retail Series and 1StdibsCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1StdibsCom 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 Series are associated (or correlated) with 1StdibsCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1StdibsCom has no effect on the direction of Qurate Retail i.e., Qurate Retail and 1StdibsCom go up and down completely randomly.

Pair Corralation between Qurate Retail and 1StdibsCom

Assuming the 90 days horizon Qurate Retail is expected to generate 8.17 times less return on investment than 1StdibsCom. But when comparing it to its historical volatility, Qurate Retail Series is 1.31 times less risky than 1StdibsCom. It trades about 0.01 of its potential returns per unit of risk. 1StdibsCom is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  365.00  in 1StdibsCom on December 1, 2024 and sell it today you would earn a total of  11.00  from holding 1StdibsCom or generate 3.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	80.95%
Values	Daily Returns

Qurate Retail Series  vs.  1StdibsCom

Qurate Retail Series

Risk-Adjusted Performance

Very Weak

Over the last 90 days Qurate Retail Series has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental 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.

1StdibsCom

Risk-Adjusted Performance

Very Weak

Over the last 90 days 1StdibsCom has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental drivers, 1StdibsCom is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Qurate Retail and 1StdibsCom

The main advantage of trading using opposite Qurate Retail and 1StdibsCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qurate Retail position performs unexpectedly, 1StdibsCom 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 1StdibsCom will offset losses from the drop in 1StdibsCom's long position.

The idea behind Qurate Retail Series and 1StdibsCom 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.