Correlation Between QKL Stores and PARKSON Retail

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

Diversification Opportunities for QKL Stores and PARKSON Retail

-1.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between QKL Stores and PARKSON Retail

If you would invest  28.00  in PARKSON Retail Group on September 3, 2025 and sell it today you would earn a total of  0.00  from holding PARKSON Retail Group or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthStrong
Accuracy98.44%
ValuesDaily Returns

QKL Stores  vs.  PARKSON Retail Group

 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.
PARKSON Retail Group 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days PARKSON Retail Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, PARKSON Retail is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

QKL Stores and PARKSON Retail Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with QKL Stores and PARKSON Retail

The main advantage of trading using opposite QKL Stores and PARKSON Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QKL Stores position performs unexpectedly, PARKSON Retail 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 PARKSON Retail will offset losses from the drop in PARKSON Retail's long position.
The idea behind QKL Stores and PARKSON Retail Group 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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