Correlation Between Costco Wholesale and Quebecor
Can any of the company-specific risk be diversified away by investing in both Costco Wholesale and Quebecor 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 Costco Wholesale and Quebecor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Costco Wholesale Corp and Quebecor, you can compare the effects of market volatilities on Costco Wholesale and Quebecor 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 Costco Wholesale with a short position of Quebecor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Costco Wholesale and Quebecor.
Diversification Opportunities for Costco Wholesale and Quebecor
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Costco and Quebecor is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Costco Wholesale Corp and Quebecor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quebecor and Costco Wholesale 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 Costco Wholesale Corp are associated (or correlated) with Quebecor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quebecor has no effect on the direction of Costco Wholesale i.e., Costco Wholesale and Quebecor go up and down completely randomly.
Pair Corralation between Costco Wholesale and Quebecor
Assuming the 90 days trading horizon Costco Wholesale Corp is expected to generate 0.22 times more return on investment than Quebecor. However, Costco Wholesale Corp is 4.56 times less risky than Quebecor. It trades about 0.44 of its potential returns per unit of risk. Quebecor is currently generating about 0.06 per unit of risk. If you would invest 4,212 in Costco Wholesale Corp on September 16, 2024 and sell it today you would earn a total of 372.00 from holding Costco Wholesale Corp or generate 8.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Costco Wholesale Corp vs. Quebecor
Performance |
Timeline |
Costco Wholesale Corp |
Quebecor |
Costco Wholesale and Quebecor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Costco Wholesale and Quebecor
The main advantage of trading using opposite Costco Wholesale and Quebecor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Costco Wholesale position performs unexpectedly, Quebecor 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 Quebecor will offset losses from the drop in Quebecor's long position.Costco Wholesale vs. Walmart Inc CDR | Costco Wholesale vs. Amazon CDR | Costco Wholesale vs. Berkshire Hathaway CDR | Costco Wholesale vs. UnitedHealth Group CDR |
Quebecor vs. UPS CDR | Quebecor vs. HOME DEPOT CDR | Quebecor vs. UnitedHealth Group CDR | Quebecor vs. Costco Wholesale Corp |
Check out your portfolio center.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.
Other Complementary Tools
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |