Correlation Between Leslies and QVC
Can any of the company-specific risk be diversified away by investing in both Leslies 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 Leslies and QVC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leslies and QVC Group, you can compare the effects of market volatilities on Leslies 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 Leslies with a short position of QVC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leslies and QVC.
Diversification Opportunities for Leslies and QVC
Good diversification
The 3 months correlation between Leslies and QVC is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Leslies and QVC Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QVC Group and Leslies 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 Leslies 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 Leslies i.e., Leslies and QVC go up and down completely randomly.
Pair Corralation between Leslies and QVC
Given the investment horizon of 90 days Leslies is expected to under-perform the QVC. But the stock apears to be less risky and, when comparing its historical volatility, Leslies is 1.87 times less risky than QVC. The stock trades about -0.16 of its potential returns per unit of risk. The QVC Group is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 426.00 in QVC Group on August 21, 2025 and sell it today you would earn a total of 296.00 from holding QVC Group or generate 69.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leslies vs. QVC Group
Performance |
| Timeline |
| Leslies |
| QVC Group |
Leslies and QVC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leslies and QVC
The main advantage of trading using opposite Leslies and QVC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leslies 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.| Leslies vs. Pinnacle Food Group | Leslies vs. FAT Brands | Leslies vs. The Brand House | Leslies vs. Noodles Company |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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