Correlation Between QVC and Contextlogic
Can any of the company-specific risk be diversified away by investing in both QVC and Contextlogic 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 QVC and Contextlogic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between QVC Group and Contextlogic, you can compare the effects of market volatilities on QVC and Contextlogic 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 QVC with a short position of Contextlogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of QVC and Contextlogic.
Diversification Opportunities for QVC and Contextlogic
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between QVC and Contextlogic is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding QVC Group and Contextlogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contextlogic and QVC 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 QVC Group are associated (or correlated) with Contextlogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contextlogic has no effect on the direction of QVC i.e., QVC and Contextlogic go up and down completely randomly.
Pair Corralation between QVC and Contextlogic
Assuming the 90 days horizon QVC Group is expected to under-perform the Contextlogic. In addition to that, QVC is 2.89 times more volatile than Contextlogic. It trades about -0.09 of its total potential returns per unit of risk. Contextlogic is currently generating about 0.06 per unit of volatility. If you would invest 690.00 in Contextlogic on April 22, 2025 and sell it today you would earn a total of 49.00 from holding Contextlogic or generate 7.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 68.25% |
| Values | Daily Returns |
QVC Group vs. Contextlogic
Performance |
| Timeline |
| QVC Group |
| Contextlogic |
Risk-Adjusted Performance
Insignificant
Weak | Strong |
QVC and Contextlogic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QVC and Contextlogic
The main advantage of trading using opposite QVC and Contextlogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QVC position performs unexpectedly, Contextlogic 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 Contextlogic will offset losses from the drop in Contextlogic's long position.| QVC vs. Apogee Therapeutics, Common | QVC vs. STMicroelectronics NV ADR | QVC vs. Aehr Test Systems | QVC vs. Analog Devices |
| Contextlogic vs. Skechers USA | Contextlogic vs. CapitaLand Investment Limited | Contextlogic vs. Boston Properties | Contextlogic vs. MGIC Investment Corp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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