Correlation Between Yunji and QVC
Can any of the company-specific risk be diversified away by investing in both Yunji 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 Yunji and QVC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yunji Inc and QVC Group, you can compare the effects of market volatilities on Yunji 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 Yunji with a short position of QVC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunji and QVC.
Diversification Opportunities for Yunji and QVC
Very good diversification
The 3 months correlation between Yunji and QVC is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Yunji Inc and QVC Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QVC Group and Yunji 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 Yunji Inc 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 Yunji i.e., Yunji and QVC go up and down completely randomly.
Pair Corralation between Yunji and QVC
Allowing for the 90-day total investment horizon Yunji Inc is expected to generate 0.45 times more return on investment than QVC. However, Yunji Inc is 2.23 times less risky than QVC. It trades about 0.07 of its potential returns per unit of risk. QVC Group is currently generating about -0.12 per unit of risk. If you would invest 165.00 in Yunji Inc on April 23, 2025 and sell it today you would earn a total of 28.00 from holding Yunji Inc or generate 16.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunji Inc vs. QVC Group
Performance |
| Timeline |
| Yunji Inc |
| QVC Group |
Yunji and QVC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunji and QVC
The main advantage of trading using opposite Yunji and QVC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunji 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 Yunji Inc 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.| QVC vs. Air Products and | QVC vs. Mesa Air Group | QVC vs. Corporacion America Airports | QVC vs. Grupo Aeroportuario del |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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