Correlation Between United States and QUICKEN

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

By analyzing existing cross correlation between United States Steel and QUICKEN LNS LLCQUICKEN, you can compare the effects of market volatilities on United States and QUICKEN 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 United States with a short position of QUICKEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and QUICKEN.

Diversification Opportunities for United States and QUICKEN

-0.25

Correlation Coefficient

United States  QUICKEN

Very good diversification

The 3 months correlation between United and QUICKEN is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding United States Steel and QUICKEN LNS LLCQUICKEN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QUICKEN LNS LLCQUICKEN and United States 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 United States Steel are associated (or correlated) with QUICKEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QUICKEN LNS LLCQUICKEN has no effect on the direction of United States i.e., United States and QUICKEN go up and down completely randomly.

Pair Corralation between United States and QUICKEN

Taking into account the 90-day investment horizon United States Steel is expected to generate 2.2 times more return on investment than QUICKEN. However, United States is 2.2 times more volatile than QUICKEN LNS LLCQUICKEN. It trades about 0.0 of its potential returns per unit of risk. QUICKEN LNS LLCQUICKEN is currently generating about -0.15 per unit of risk. If you would invest  3,603  in United States Steel on September 13, 2024 and sell it today you would lose (110.00) from holding United States Steel or give up 3.05% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	85.71%
Values	Daily Returns

United States Steel  vs.  QUICKEN LNS LLCQUICKEN

United States Steel

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days United States Steel has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, United States is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

QUICKEN LNS LLCQUICKEN

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days QUICKEN LNS LLCQUICKEN has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for QUICKEN LNS LLCQUICKEN investors.

Pair Trading with United States and QUICKEN

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

The idea behind United States Steel and QUICKEN LNS LLCQUICKEN 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.