Correlation Between Titan America and QVC

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

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

Diversification Opportunities for Titan America and QVC

0.18

Correlation Coefficient

Titan America  QVC

Average diversification

The 3 months correlation between Titan and QVC is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Titan America SA and QVC Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QVC Group and Titan America 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 Titan America SA 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 Titan America i.e., Titan America and QVC go up and down completely randomly.

Pair Corralation between Titan America and QVC

Given the investment horizon of 90 days Titan America SA is expected to generate 0.21 times more return on investment than QVC. However, Titan America SA is 4.84 times less risky than QVC. It trades about 0.05 of its potential returns per unit of risk. QVC Group is currently generating about -0.04 per unit of risk. If you would invest  1,325  in Titan America SA on May 2, 2025 and sell it today you would earn a total of  87.00  from holding Titan America SA or generate 6.57% return on investment over 90 days.

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

Titan America SA  vs.  QVC Group

Titan America SA

Risk-Adjusted Performance

Insignificant

Over the last 90 days Titan America SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very weak basic indicators, Titan America may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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 unfluctuating 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.

Pair Trading with Titan America and QVC

The main advantage of trading using opposite Titan America and QVC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Titan America 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 Titan America SA 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.