Correlation Between Xenia Hotels and QINGCI GAMES
Can any of the company-specific risk be diversified away by investing in both Xenia Hotels and QINGCI GAMES 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 Xenia Hotels and QINGCI GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xenia Hotels Resorts and QINGCI GAMES INC, you can compare the effects of market volatilities on Xenia Hotels and QINGCI GAMES 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 Xenia Hotels with a short position of QINGCI GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xenia Hotels and QINGCI GAMES.
Diversification Opportunities for Xenia Hotels and QINGCI GAMES
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xenia and QINGCI is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Xenia Hotels Resorts and QINGCI GAMES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QINGCI GAMES INC and Xenia Hotels 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 Xenia Hotels Resorts are associated (or correlated) with QINGCI GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QINGCI GAMES INC has no effect on the direction of Xenia Hotels i.e., Xenia Hotels and QINGCI GAMES go up and down completely randomly.
Pair Corralation between Xenia Hotels and QINGCI GAMES
Assuming the 90 days trading horizon Xenia Hotels Resorts is expected to generate 0.54 times more return on investment than QINGCI GAMES. However, Xenia Hotels Resorts is 1.86 times less risky than QINGCI GAMES. It trades about 0.02 of its potential returns per unit of risk. QINGCI GAMES INC is currently generating about -0.02 per unit of risk. If you would invest 1,257 in Xenia Hotels Resorts on November 5, 2024 and sell it today you would earn a total of 153.00 from holding Xenia Hotels Resorts or generate 12.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xenia Hotels Resorts vs. QINGCI GAMES INC
Performance |
| Timeline |
| Xenia Hotels Resorts |
| QINGCI GAMES INC |
Xenia Hotels and QINGCI GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xenia Hotels and QINGCI GAMES
The main advantage of trading using opposite Xenia Hotels and QINGCI GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xenia Hotels position performs unexpectedly, QINGCI GAMES 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 QINGCI GAMES will offset losses from the drop in QINGCI GAMES's long position.| Xenia Hotels vs. Gaztransport Technigaz SA | Xenia Hotels vs. SCANSOURCE | Xenia Hotels vs. Alfa Financial Software | Xenia Hotels vs. Casio Computer CoLtd |
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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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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