Correlation Between QK International and Extended Dur

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

Diversification Opportunities for QK International and Extended Dur

-0.48
  Correlation Coefficient

Very good diversification

The 3 months correlation between QK International and Extended is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding QK International Group and Extended Dur Trs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Extended Dur Trs and QK International 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 QK International Group are associated (or correlated) with Extended Dur. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Extended Dur Trs has no effect on the direction of QK International i.e., QK International and Extended Dur go up and down completely randomly.

Pair Corralation between QK International and Extended Dur

Allowing for the 90-day total investment horizon QK International Group is expected to under-perform the Extended Dur. In addition to that, QK International is 2.3 times more volatile than Extended Dur Trs. It trades about -0.22 of its total potential returns per unit of risk. Extended Dur Trs is currently generating about -0.21 per unit of volatility. If you would invest  9,735  in Extended Dur Trs on June 26, 2022 and sell it today you would lose (673.00)  from holding Extended Dur Trs or give up 6.91% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

QK International Group  vs.  Extended Dur Trs

 Performance (%) 
       Timeline  
QK International 
QK International Performance
6 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in QK International Group are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak forward-looking signals, QK International demonstrated solid returns over the last few months and may actually be approaching a breakup point.

QK International Price Channel

Extended Dur Trs 
Extended Performance
0 of 100
Over the last 90 days Extended Dur Trs has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, Extended Dur is not utilizing all of its potentials. The new stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Extended Price Channel

QK International and Extended Dur Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with QK International and Extended Dur

The main advantage of trading using opposite QK International and Extended Dur positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QK International position performs unexpectedly, Extended Dur 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 Extended Dur will offset losses from the drop in Extended Dur's long position.
QK International vs. Industrias Bachoco SA
The idea behind QK International Group and Extended Dur Trs 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.
Extended Dur vs. International Business Machines
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 Global Correlations module to find global opportunities by holding instruments from different markets.

Other Complementary Tools

Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go