Correlation Between Compania Cervecerias and QVC

Can any of the company-specific risk be diversified away by investing in both Compania Cervecerias and QVC 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 Compania Cervecerias and QVC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Compania Cervecerias Unidas and QVC Group, you can compare the effects of market volatilities on Compania Cervecerias and QVC 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 Compania Cervecerias with a short position of QVC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compania Cervecerias and QVC.

Diversification Opportunities for Compania Cervecerias and QVC

0.79

Correlation Coefficient

Compania Cervecerias  QVC

Poor diversification

The 3 months correlation between Compania and QVC is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Compania Cervecerias Unidas and QVC Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QVC Group and Compania Cervecerias 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 Compania Cervecerias Unidas are associated (or correlated) with QVC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QVC Group has no effect on the direction of Compania Cervecerias i.e., Compania Cervecerias and QVC go up and down completely randomly.

Pair Corralation between Compania Cervecerias and QVC

Considering the 90-day investment horizon Compania Cervecerias Unidas is expected to generate 0.13 times more return on investment than QVC. However, Compania Cervecerias Unidas is 7.74 times less risky than QVC. It trades about -0.18 of its potential returns per unit of risk. QVC Group is currently generating about -0.06 per unit of risk. If you would invest  1,457  in Compania Cervecerias Unidas on May 14, 2025 and sell it today you would lose (233.00) from holding Compania Cervecerias Unidas or give up 15.99% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Compania Cervecerias Unidas  vs.  QVC Group

Compania Cervecerias

Risk-Adjusted Performance

Weakest

Over the last 90 days Compania Cervecerias Unidas has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

QVC Group

Risk-Adjusted Performance

Weakest

Over the last 90 days QVC Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Compania Cervecerias and QVC

The main advantage of trading using opposite Compania Cervecerias and QVC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compania Cervecerias position performs unexpectedly, QVC 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 QVC will offset losses from the drop in QVC's long position.

The idea behind Compania Cervecerias Unidas and QVC 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.