Correlation Between QIIWI GAMES and Benchmark Electronics
Can any of the company-specific risk be diversified away by investing in both QIIWI GAMES and Benchmark Electronics 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 QIIWI GAMES and Benchmark Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between QIIWI GAMES AB and Benchmark Electronics, you can compare the effects of market volatilities on QIIWI GAMES and Benchmark Electronics 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 QIIWI GAMES with a short position of Benchmark Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of QIIWI GAMES and Benchmark Electronics.
Diversification Opportunities for QIIWI GAMES and Benchmark Electronics
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between QIIWI and Benchmark is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding QIIWI GAMES AB and Benchmark Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benchmark Electronics and QIIWI GAMES 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 QIIWI GAMES AB are associated (or correlated) with Benchmark Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benchmark Electronics has no effect on the direction of QIIWI GAMES i.e., QIIWI GAMES and Benchmark Electronics go up and down completely randomly.
Pair Corralation between QIIWI GAMES and Benchmark Electronics
Assuming the 90 days horizon QIIWI GAMES AB is expected to generate 1.63 times more return on investment than Benchmark Electronics. However, QIIWI GAMES is 1.63 times more volatile than Benchmark Electronics. It trades about 0.13 of its potential returns per unit of risk. Benchmark Electronics is currently generating about 0.13 per unit of risk. If you would invest 21.00 in QIIWI GAMES AB on August 29, 2024 and sell it today you would earn a total of 3.00 from holding QIIWI GAMES AB or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
QIIWI GAMES AB vs. Benchmark Electronics
Performance |
| Timeline |
| QIIWI GAMES AB |
| Benchmark Electronics |
QIIWI GAMES and Benchmark Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QIIWI GAMES and Benchmark Electronics
The main advantage of trading using opposite QIIWI GAMES and Benchmark Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QIIWI GAMES position performs unexpectedly, Benchmark Electronics 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 Benchmark Electronics will offset losses from the drop in Benchmark Electronics' long position.| QIIWI GAMES vs. Apple Inc | QIIWI GAMES vs. Apple Inc | QIIWI GAMES vs. Apple Inc | QIIWI GAMES vs. Apple Inc |
| Benchmark Electronics vs. Diamyd Medical AB | Benchmark Electronics vs. Aluminum of | Benchmark Electronics vs. Merit Medical Systems | Benchmark Electronics vs. AVITA Medical |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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