Correlation Between Doubledown Interactive and QVC

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

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

Diversification Opportunities for Doubledown Interactive and QVC

0.1

Correlation Coefficient

Doubledown Interactive  QVC

Average diversification

The 3 months correlation between Doubledown and QVC is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Doubledown Interactive Co and QVC Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QVC Group and Doubledown Interactive 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 Doubledown Interactive Co 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 Doubledown Interactive i.e., Doubledown Interactive and QVC go up and down completely randomly.

Pair Corralation between Doubledown Interactive and QVC

Considering the 90-day investment horizon Doubledown Interactive Co is expected to under-perform the QVC. But the stock apears to be less risky and, when comparing its historical volatility, Doubledown Interactive Co is 2.78 times less risky than QVC. The stock trades about 0.0 of its potential returns per unit of risk. The QVC Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  500.00  in QVC Group on May 20, 2025 and sell it today you would lose (83.00) from holding QVC Group or give up 16.6% of portfolio value over 90 days.

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

Doubledown Interactive Co  vs.  QVC Group

Doubledown Interactive

Risk-Adjusted Performance

Weakest

Over the last 90 days Doubledown Interactive Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, Doubledown Interactive is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

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 uncertain 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 Doubledown Interactive and QVC

The main advantage of trading using opposite Doubledown Interactive and QVC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubledown Interactive 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 Doubledown Interactive Co 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.