Correlation Between Eltek and QVC

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

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

Diversification Opportunities for Eltek and QVC

-0.23

Correlation Coefficient

Eltek  QVC

Very good diversification

The 3 months correlation between Eltek and QVC is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Eltek and QVC Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QVC Group and Eltek 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 Eltek 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 Eltek i.e., Eltek and QVC go up and down completely randomly.

Pair Corralation between Eltek and QVC

Given the investment horizon of 90 days Eltek is expected to generate 14.62 times less return on investment than QVC. But when comparing it to its historical volatility, Eltek is 5.1 times less risky than QVC. It trades about 0.02 of its potential returns per unit of risk. QVC Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  463.00  in QVC Group on May 27, 2025 and sell it today you would earn a total of  10.00  from holding QVC Group or generate 2.16% return on investment over 90 days.

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

Eltek  vs.  QVC Group

Eltek

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Eltek are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Eltek is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

QVC Group

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in QVC Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, QVC sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Eltek and QVC

The main advantage of trading using opposite Eltek and QVC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eltek 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 Eltek 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.

Check out your portfolio center.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.