Correlation Between Linkage Global and QVC

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

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

Diversification Opportunities for Linkage Global and QVC

-0.85

Correlation Coefficient

Linkage Global  QVC

Pay attention - limited upside

The 3 months correlation between Linkage and QVC is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Linkage Global Ordinary and QVC Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QVC Group and Linkage Global 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 Linkage Global Ordinary 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 Linkage Global i.e., Linkage Global and QVC go up and down completely randomly.

Pair Corralation between Linkage Global and QVC

Given the investment horizon of 90 days Linkage Global Ordinary is expected to generate 0.37 times more return on investment than QVC. However, Linkage Global Ordinary is 2.68 times less risky than QVC. It trades about 0.11 of its potential returns per unit of risk. QVC Group is currently generating about -0.06 per unit of risk. If you would invest  197.00  in Linkage Global Ordinary on April 24, 2025 and sell it today you would earn a total of  52.00  from holding Linkage Global Ordinary or generate 26.4% return on investment over 90 days.

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

Linkage Global Ordinary  vs.  QVC Group

Linkage Global Ordinary

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Linkage Global Ordinary are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain fundamental indicators, Linkage Global sustained 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. 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 Linkage Global and QVC

The main advantage of trading using opposite Linkage Global and QVC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linkage Global 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 Linkage Global Ordinary 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.