Correlation Between QVC and QVC

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

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

Diversification Opportunities for QVC and QVC

0.93

Correlation Coefficient

QVC  QVC

Almost no diversification

The 3 months correlation between QVC and QVC is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding QVC Group and QVC Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QVC Group 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 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 QVC i.e., QVC and QVC go up and down completely randomly.

Pair Corralation between QVC and QVC

Assuming the 90 days horizon QVC Group is expected to generate 0.89 times more return on investment than QVC. However, QVC Group is 1.13 times less risky than QVC. It trades about -0.09 of its potential returns per unit of risk. QVC Group is currently generating about -0.12 per unit of risk. If you would invest  750.00  in QVC Group on April 21, 2025 and sell it today you would lose (469.00) from holding QVC Group or give up 62.53% of portfolio value over 90 days.

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

QVC Group  vs.  QVC Group

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 August 2025. The current disturbance may also be a sign of long term up-swing for the company 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. Even with uncertain performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in August 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with QVC and QVC

The main advantage of trading using opposite QVC and QVC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QVC 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 QVC Group 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.