Correlation Between Citigroup and QVC

Can any of the company-specific risk be diversified away by investing in both Citigroup 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 Citigroup and QVC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Citigroup and QVC Group, you can compare the effects of market volatilities on Citigroup 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 Citigroup with a short position of QVC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and QVC.

Diversification Opportunities for Citigroup and QVC

0.27

Correlation Coefficient

Citigroup  QVC

Modest diversification

The 3 months correlation between Citigroup and QVC is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and QVC Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QVC Group and Citigroup 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 Citigroup 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 Citigroup i.e., Citigroup and QVC go up and down completely randomly.

Pair Corralation between Citigroup and QVC

Taking into account the 90-day investment horizon Citigroup is expected to generate 12.74 times less return on investment than QVC. But when comparing it to its historical volatility, Citigroup is 7.61 times less risky than QVC. It trades about 0.08 of its potential returns per unit of risk. 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 Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Citigroup  vs.  QVC Group

Citigroup

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile fundamental indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in December 2025.

QVC Group

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in QVC Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile technical and fundamental indicators, QVC sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citigroup and QVC

The main advantage of trading using opposite Citigroup and QVC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup 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 Citigroup 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.

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.