Correlation Between Qurate Retail and IPower

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

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

Diversification Opportunities for Qurate Retail and IPower

-0.06

Correlation Coefficient

Qurate Retail  IPower

Good diversification

The 3 months correlation between Qurate and IPower is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Qurate Retail and iPower Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iPower Inc 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 are associated (or correlated) with IPower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iPower Inc has no effect on the direction of Qurate Retail i.e., Qurate Retail and IPower go up and down completely randomly.

Pair Corralation between Qurate Retail and IPower

Assuming the 90 days horizon Qurate Retail is expected to generate 0.47 times more return on investment than IPower. However, Qurate Retail is 2.11 times less risky than IPower. It trades about -0.05 of its potential returns per unit of risk. iPower Inc is currently generating about -0.1 per unit of risk. If you would invest  3,173  in Qurate Retail on December 28, 2024 and sell it today you would lose (280.00) from holding Qurate Retail or give up 8.82% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	90.16%
Values	Daily Returns

Qurate Retail  vs.  iPower Inc

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 latest weak performance, the Preferred Stock's technical and fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

iPower Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days iPower Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Etf's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the fund sophisticated investors.

Pair Trading with Qurate Retail and IPower

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

The idea behind Qurate Retail and iPower Inc 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.