Correlation Between QVC and Cardinal Health

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

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

Diversification Opportunities for QVC and Cardinal Health

0.28

Correlation Coefficient

QVC  Cardinal Health

Modest diversification

The 3 months correlation between QVC and Cardinal is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding QVC Group and Cardinal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Health 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 Cardinal Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardinal Health has no effect on the direction of QVC i.e., QVC and Cardinal Health go up and down completely randomly.

Pair Corralation between QVC and Cardinal Health

Assuming the 90 days horizon QVC Group is expected to under-perform the Cardinal Health. In addition to that, QVC is 5.96 times more volatile than Cardinal Health. It trades about -0.03 of its total potential returns per unit of risk. Cardinal Health is currently generating about -0.04 per unit of volatility. If you would invest  15,421  in Cardinal Health on May 27, 2025 and sell it today you would lose (611.00) from holding Cardinal Health or give up 3.96% of portfolio value over 90 days.

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

QVC Group  vs.  Cardinal Health

QVC Group

Risk-Adjusted Performance

Weakest

Over the last 90 days QVC Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Cardinal Health

Risk-Adjusted Performance

Weakest

Over the last 90 days Cardinal Health has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Cardinal Health is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with QVC and Cardinal Health

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

The idea behind QVC Group and Cardinal Health 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.