Correlation Between Qwest Corp and Woolworths Holdings
Can any of the company-specific risk be diversified away by investing in both Qwest Corp and Woolworths Holdings 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 Qwest Corp and Woolworths Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qwest Corp NT and Woolworths Holdings Ltd, you can compare the effects of market volatilities on Qwest Corp and Woolworths Holdings 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 Qwest Corp with a short position of Woolworths Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qwest Corp and Woolworths Holdings.
Diversification Opportunities for Qwest Corp and Woolworths Holdings
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Qwest and Woolworths is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Qwest Corp NT and Woolworths Holdings Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Woolworths Holdings and Qwest Corp 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 Qwest Corp NT are associated (or correlated) with Woolworths Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Woolworths Holdings has no effect on the direction of Qwest Corp i.e., Qwest Corp and Woolworths Holdings go up and down completely randomly.
Pair Corralation between Qwest Corp and Woolworths Holdings
Given the investment horizon of 90 days Qwest Corp NT is expected to generate 0.19 times more return on investment than Woolworths Holdings. However, Qwest Corp NT is 5.25 times less risky than Woolworths Holdings. It trades about -0.27 of its potential returns per unit of risk. Woolworths Holdings Ltd is currently generating about -0.13 per unit of risk. If you would invest 1,019 in Qwest Corp NT on February 1, 2024 and sell it today you would lose (47.00) from holding Qwest Corp NT or give up 4.61% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Qwest Corp NT vs. Woolworths Holdings Ltd
Performance |
Timeline |
Qwest Corp NT |
Woolworths Holdings |
Qwest Corp and Woolworths Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Qwest Corp and Woolworths Holdings
The main advantage of trading using opposite Qwest Corp and Woolworths Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qwest Corp position performs unexpectedly, Woolworths Holdings 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 Woolworths Holdings will offset losses from the drop in Woolworths Holdings' long position.Qwest Corp vs. T Mobile | Qwest Corp vs. Comcast Corp | Qwest Corp vs. Charter Communications | Qwest Corp vs. Vodafone Group PLC |
Woolworths Holdings vs. Kohls Corp | Woolworths Holdings vs. Nordstrom | Woolworths Holdings vs. Dillards | Woolworths Holdings vs. Macys Inc |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |