Correlation Between AXA SA and QURATE RETAIL

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

By analyzing existing cross correlation between AXA SA and QURATE RETAIL INC, you can compare the effects of market volatilities on AXA SA 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 AXA SA with a short position of QURATE RETAIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXA SA and QURATE RETAIL.

Diversification Opportunities for AXA SA and QURATE RETAIL

0.55

Correlation Coefficient

AXA SA  QURATE RETAIL

Very weak diversification

The 3 months correlation between AXA and QURATE is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding AXA SA and QURATE RETAIL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QURATE RETAIL INC and AXA SA 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 AXA SA 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 INC has no effect on the direction of AXA SA i.e., AXA SA and QURATE RETAIL go up and down completely randomly.

Pair Corralation between AXA SA and QURATE RETAIL

Assuming the 90 days horizon AXA SA is expected to under-perform the QURATE RETAIL. But the stock apears to be less risky and, when comparing its historical volatility, AXA SA is 2.77 times less risky than QURATE RETAIL. The stock trades about -0.09 of its potential returns per unit of risk. The QURATE RETAIL INC is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  330.00  in QURATE RETAIL INC on September 13, 2024 and sell it today you would lose (6.00) from holding QURATE RETAIL INC or give up 1.82% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

AXA SA  vs.  QURATE RETAIL INC

AXA SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AXA SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

QURATE RETAIL INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days QURATE RETAIL INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, QURATE RETAIL is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with AXA SA and QURATE RETAIL

The main advantage of trading using opposite AXA SA and QURATE RETAIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXA SA 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 AXA SA and QURATE RETAIL 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.