Correlation Between CompoSecure and QVC

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

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

Diversification Opportunities for CompoSecure and QVC

-0.93

Correlation Coefficient

CompoSecure  QVC

Pay attention - limited upside

The 3 months correlation between CompoSecure and QVC is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding CompoSecure and QVC Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QVC Group and CompoSecure 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 CompoSecure 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 CompoSecure i.e., CompoSecure and QVC go up and down completely randomly.

Pair Corralation between CompoSecure and QVC

Assuming the 90 days horizon CompoSecure is expected to generate 1.12 times more return on investment than QVC. However, CompoSecure is 1.12 times more volatile than QVC Group. It trades about -0.01 of its potential returns per unit of risk. QVC Group is currently generating about -0.5 per unit of risk. If you would invest  626.00  in CompoSecure on May 2, 2025 and sell it today you would lose (11.00) from holding CompoSecure or give up 1.76% of portfolio value over 90 days.

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

CompoSecure  vs.  QVC Group

CompoSecure

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CompoSecure are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, CompoSecure showed solid returns over the last few months and may actually be approaching a breakup point.

QVC Group

Risk-Adjusted Performance

Very Weak

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

Pair Trading with CompoSecure and QVC

The main advantage of trading using opposite CompoSecure and QVC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompoSecure 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 CompoSecure 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..