Correlation Between Charter Communications and QVC

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

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

Diversification Opportunities for Charter Communications and QVC

-0.12

Correlation Coefficient

Charter Communications  QVC

Good diversification

The 3 months correlation between Charter and QVC is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Charter Communications and QVC Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QVC Group and Charter Communications 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 Charter Communications 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 Charter Communications i.e., Charter Communications and QVC go up and down completely randomly.

Pair Corralation between Charter Communications and QVC

Given the investment horizon of 90 days Charter Communications is expected to under-perform the QVC. But the stock apears to be less risky and, when comparing its historical volatility, Charter Communications is 3.3 times less risky than QVC. The stock trades about -0.22 of its potential returns per unit of risk. The QVC Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  500.00  in QVC Group on May 21, 2025 and sell it today you would lose (94.00) from holding QVC Group or give up 18.8% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Charter Communications  vs.  QVC Group

Charter Communications

Risk-Adjusted Performance

Weakest

Over the last 90 days Charter Communications has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic 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.

QVC Group

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in QVC Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting technical and fundamental indicators, QVC may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Charter Communications and QVC

The main advantage of trading using opposite Charter Communications and QVC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Charter Communications 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 Charter Communications 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.