Correlation Between Jumia Technologies and QVC
Can any of the company-specific risk be diversified away by investing in both Jumia Technologies 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 Jumia Technologies and QVC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jumia Technologies AG and QVC Group, you can compare the effects of market volatilities on Jumia Technologies 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 Jumia Technologies with a short position of QVC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jumia Technologies and QVC.
Diversification Opportunities for Jumia Technologies and QVC
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jumia and QVC is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Jumia Technologies AG and QVC Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QVC Group and Jumia Technologies 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 Jumia Technologies AG 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 Jumia Technologies i.e., Jumia Technologies and QVC go up and down completely randomly.
Pair Corralation between Jumia Technologies and QVC
Given the investment horizon of 90 days Jumia Technologies AG is expected to generate 0.45 times more return on investment than QVC. However, Jumia Technologies AG is 2.23 times less risky than QVC. It trades about 0.24 of its potential returns per unit of risk. QVC Group is currently generating about -0.12 per unit of risk. If you would invest 234.00 in Jumia Technologies AG on April 24, 2025 and sell it today you would earn a total of 243.00 from holding Jumia Technologies AG or generate 103.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jumia Technologies AG vs. QVC Group
Performance |
| Timeline |
| Jumia Technologies |
| QVC Group |
Jumia Technologies and QVC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jumia Technologies and QVC
The main advantage of trading using opposite Jumia Technologies and QVC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jumia Technologies 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.| Jumia Technologies vs. Global E Online | Jumia Technologies vs. PDD Holdings | Jumia Technologies vs. Sea | Jumia Technologies vs. Vipshop Holdings Limited |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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