Correlation Between QVC and Frontier Communications

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

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

Diversification Opportunities for QVC and Frontier Communications

-0.02

Correlation Coefficient

QVC  Frontier Communications

Good diversification

The 3 months correlation between QVC and Frontier is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding QVC Group and Frontier Communications Parent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frontier Communications and QVC 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 QVC Group are associated (or correlated) with Frontier Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frontier Communications has no effect on the direction of QVC i.e., QVC and Frontier Communications go up and down completely randomly.

Pair Corralation between QVC and Frontier Communications

Assuming the 90 days horizon QVC Group is expected to under-perform the Frontier Communications. In addition to that, QVC is 51.82 times more volatile than Frontier Communications Parent. It trades about -0.07 of its total potential returns per unit of risk. Frontier Communications Parent is currently generating about 0.01 per unit of volatility. If you would invest  3,654  in Frontier Communications Parent on May 4, 2025 and sell it today you would earn a total of  6.00  from holding Frontier Communications Parent or generate 0.16% return on investment over 90 days.

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

QVC Group  vs.  Frontier Communications Parent

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

Frontier Communications

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Frontier Communications Parent are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable fundamental drivers, Frontier Communications is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with QVC and Frontier Communications

The main advantage of trading using opposite QVC and Frontier Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QVC position performs unexpectedly, Frontier Communications 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 Frontier Communications will offset losses from the drop in Frontier Communications' long position.

The idea behind QVC Group and Frontier Communications Parent 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.