Correlation Between Qurate Retail and YY

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Qurate Retail and YY 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 YY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qurate Retail Group and YY Inc Class, you can compare the effects of market volatilities on Qurate Retail and YY 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 YY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qurate Retail and YY.

Diversification Opportunities for Qurate Retail and YY

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Qurate and YY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Qurate Retail Group and YY Inc Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YY Inc Class 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 Group are associated (or correlated) with YY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YY Inc Class has no effect on the direction of Qurate Retail i.e., Qurate Retail and YY go up and down completely randomly.

Pair Corralation between Qurate Retail and YY

If you would invest  3,006  in YY Inc Class on December 30, 2023 and sell it today you would earn a total of  69.00  from holding YY Inc Class or generate 2.3% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Qurate Retail Group  vs.  YY Inc Class

 Performance 
       Timeline  
Qurate Retail Group 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Qurate Retail Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, Qurate Retail is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.
YY Inc Class 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days YY Inc Class has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Qurate Retail and YY Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Qurate Retail and YY

The main advantage of trading using opposite Qurate Retail and YY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qurate Retail position performs unexpectedly, YY 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 YY will offset losses from the drop in YY's long position.
The idea behind Qurate Retail Group and YY Inc Class 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.
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

Other Complementary Tools

Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Transaction History
View history of all your transactions and understand their impact on performance
CEOs Directory
Screen CEOs from public companies around the world
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals