Correlation Between AKA Brands and QVC
Can any of the company-specific risk be diversified away by investing in both AKA Brands 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 AKA Brands and QVC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AKA Brands Holding and QVC Group, you can compare the effects of market volatilities on AKA Brands 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 AKA Brands with a short position of QVC. Check out your portfolio center. Please also check ongoing floating volatility patterns of AKA Brands and QVC.
Diversification Opportunities for AKA Brands and QVC
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AKA and QVC is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding AKA Brands Holding and QVC Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QVC Group and AKA Brands 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 AKA Brands Holding 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 AKA Brands i.e., AKA Brands and QVC go up and down completely randomly.
Pair Corralation between AKA Brands and QVC
Considering the 90-day investment horizon AKA Brands Holding is expected to generate 0.53 times more return on investment than QVC. However, AKA Brands Holding is 1.9 times less risky than QVC. It trades about 0.16 of its potential returns per unit of risk. QVC Group is currently generating about -0.26 per unit of risk. If you would invest 1,030 in AKA Brands Holding on April 30, 2025 and sell it today you would earn a total of 70.00 from holding AKA Brands Holding or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AKA Brands Holding vs. QVC Group
Performance |
| Timeline |
| AKA Brands Holding |
| QVC Group |
AKA Brands and QVC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AKA Brands and QVC
The main advantage of trading using opposite AKA Brands and QVC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AKA Brands 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.| AKA Brands vs. Jeffs Brands | AKA Brands vs. iPower Inc | AKA Brands vs. Oriental Culture Holding | AKA Brands vs. MOGU Inc |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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