Correlation Between QVC and Scholastic

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

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

Diversification Opportunities for QVC and Scholastic

-0.47

Correlation Coefficient

QVC  Scholastic

Very good diversification

The 3 months correlation between QVC and Scholastic is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding QVC Group and Scholastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scholastic 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 Scholastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scholastic has no effect on the direction of QVC i.e., QVC and Scholastic go up and down completely randomly.

Pair Corralation between QVC and Scholastic

Assuming the 90 days horizon QVC Group is expected to under-perform the Scholastic. In addition to that, QVC is 3.0 times more volatile than Scholastic. It trades about -0.14 of its total potential returns per unit of risk. Scholastic is currently generating about 0.14 per unit of volatility. If you would invest  1,845  in Scholastic on May 4, 2025 and sell it today you would earn a total of  650.00  from holding Scholastic or generate 35.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

QVC Group  vs.  Scholastic

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 unfluctuating 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.

Scholastic

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Scholastic are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain technical indicators, Scholastic disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with QVC and Scholastic

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

The idea behind QVC Group and Scholastic 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.