Correlation Between QKL Stores and Ross Stores

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

Diversification Opportunities for QKL Stores and Ross Stores

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between QKL Stores and Ross Stores

If you would invest  15,085  in Ross Stores on August 31, 2025 and sell it today you would earn a total of  2,551  from holding Ross Stores or generate 16.91% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy96.92%
ValuesDaily Returns

QKL Stores  vs.  Ross Stores

 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.
Ross Stores 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Ross Stores are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Ross Stores unveiled solid returns over the last few months and may actually be approaching a breakup point.

QKL Stores and Ross Stores Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with QKL Stores and Ross Stores

The main advantage of trading using opposite QKL Stores and Ross Stores positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QKL Stores position performs unexpectedly, Ross Stores 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 Ross Stores will offset losses from the drop in Ross Stores' long position.
The idea behind QKL Stores and Ross Stores 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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