Correlation Between SD Standard and QVC

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

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

Diversification Opportunities for SD Standard and QVC

0.0

Correlation Coefficient

SD Standard  QVC

Pay attention - limited upside

The 3 months correlation between SDSDF and QVC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SD Standard Drilling and QVC Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QVC Group and SD Standard 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 SD Standard Drilling 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 SD Standard i.e., SD Standard and QVC go up and down completely randomly.

Pair Corralation between SD Standard and QVC

If you would invest  15.00  in SD Standard Drilling on May 15, 2025 and sell it today you would earn a total of  0.00  from holding SD Standard Drilling or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

SD Standard Drilling  vs.  QVC Group

SD Standard Drilling

Risk-Adjusted Performance

Weakest

Over the last 90 days SD Standard Drilling has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, SD Standard is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

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. Despite latest abnormal performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with SD Standard and QVC

The main advantage of trading using opposite SD Standard and QVC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SD Standard 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 SD Standard Drilling 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.

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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.