Correlation Between QIIWI GAMES and GigaMedia
Can any of the company-specific risk be diversified away by investing in both QIIWI GAMES and GigaMedia 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 GigaMedia 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 GigaMedia, you can compare the effects of market volatilities on QIIWI GAMES and GigaMedia 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 GigaMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of QIIWI GAMES and GigaMedia.
Diversification Opportunities for QIIWI GAMES and GigaMedia
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between QIIWI and GigaMedia is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding QIIWI GAMES AB and GigaMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaMedia 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 GigaMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GigaMedia has no effect on the direction of QIIWI GAMES i.e., QIIWI GAMES and GigaMedia go up and down completely randomly.
Pair Corralation between QIIWI GAMES and GigaMedia
Assuming the 90 days horizon QIIWI GAMES AB is expected to generate 9.46 times more return on investment than GigaMedia. However, QIIWI GAMES is 9.46 times more volatile than GigaMedia. It trades about 0.35 of its potential returns per unit of risk. GigaMedia is currently generating about -0.11 per unit of risk. If you would invest 20.00 in QIIWI GAMES AB on September 21, 2024 and sell it today you would earn a total of 10.00 from holding QIIWI GAMES AB or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
QIIWI GAMES AB vs. GigaMedia
Performance |
| Timeline |
| QIIWI GAMES AB |
| GigaMedia |
QIIWI GAMES and GigaMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QIIWI GAMES and GigaMedia
The main advantage of trading using opposite QIIWI GAMES and GigaMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QIIWI GAMES position performs unexpectedly, GigaMedia 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 GigaMedia will offset losses from the drop in GigaMedia's long position.| QIIWI GAMES vs. GOODYEAR T RUBBER | QIIWI GAMES vs. Chuangs China Investments | QIIWI GAMES vs. Apollo Investment Corp | QIIWI GAMES vs. The Yokohama Rubber |
| GigaMedia vs. ASSOC BR FOODS | GigaMedia vs. TYSON FOODS A | GigaMedia vs. ORMAT TECHNOLOGIES | GigaMedia vs. Amkor Technology |
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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