Correlation Between Keurig Dr and QVC

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

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

Diversification Opportunities for Keurig Dr and QVC

0.48

Correlation Coefficient

Keurig Dr  QVC

Very weak diversification

The 3 months correlation between Keurig and QVC is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Keurig Dr Pepper and QVC Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QVC Group and Keurig Dr 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 Keurig Dr Pepper 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 Keurig Dr i.e., Keurig Dr and QVC go up and down completely randomly.

Pair Corralation between Keurig Dr and QVC

Considering the 90-day investment horizon Keurig Dr Pepper is expected to generate 0.09 times more return on investment than QVC. However, Keurig Dr Pepper is 11.29 times less risky than QVC. It trades about 0.01 of its potential returns per unit of risk. QVC Group is currently generating about -0.03 per unit of risk. If you would invest  3,380  in Keurig Dr Pepper on May 1, 2025 and sell it today you would earn a total of  2.00  from holding Keurig Dr Pepper or generate 0.06% return on investment over 90 days.

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

Keurig Dr Pepper  vs.  QVC Group

Keurig Dr Pepper

Risk-Adjusted Performance

Very Weak

Over the last 90 days Keurig Dr Pepper has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Keurig Dr is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

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. Despite unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Keurig Dr and QVC

The main advantage of trading using opposite Keurig Dr and QVC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keurig Dr 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 Keurig Dr Pepper 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.