Correlation Between QKL Stores and InRetail Per

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Can any of the company-specific risk be diversified away by investing in both QKL Stores and InRetail Per 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 QKL Stores and InRetail Per into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between QKL Stores and InRetail Per Corp, you can compare the effects of market volatilities on QKL Stores and InRetail Per 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 QKL Stores with a short position of InRetail Per. Check out your portfolio center. Please also check ongoing floating volatility patterns of QKL Stores and InRetail Per.

Diversification Opportunities for QKL Stores and InRetail Per

-1.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between QKL and InRetail is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding QKL Stores and InRetail Per Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InRetail Per Corp and QKL Stores 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 QKL Stores are associated (or correlated) with InRetail Per. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InRetail Per Corp has no effect on the direction of QKL Stores i.e., QKL Stores and InRetail Per go up and down completely randomly.

Pair Corralation between QKL Stores and InRetail Per

If you would invest  2,684  in InRetail Per Corp on August 30, 2025 and sell it today you would earn a total of  0.00  from holding InRetail Per Corp or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

QKL Stores  vs.  InRetail Per Corp

 Performance 
       Timeline  
QKL Stores 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days QKL Stores has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, QKL Stores is not utilizing all of its potentials. The new stock price uproar, may contribute to short-horizon losses for the private investors.
InRetail Per Corp 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days InRetail Per Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, InRetail Per is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

QKL Stores and InRetail Per Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with QKL Stores and InRetail Per

The main advantage of trading using opposite QKL Stores and InRetail Per positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QKL Stores position performs unexpectedly, InRetail Per 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 InRetail Per will offset losses from the drop in InRetail Per's long position.
The idea behind QKL Stores and InRetail Per Corp 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 CEOs Directory module to screen CEOs from public companies around the world.

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