Correlation Between Corsair Gaming and Qingdao Haier
Can any of the company-specific risk be diversified away by investing in both Corsair Gaming and Qingdao Haier 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 Corsair Gaming and Qingdao Haier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corsair Gaming and Qingdao Haier Co, you can compare the effects of market volatilities on Corsair Gaming and Qingdao Haier 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 Corsair Gaming with a short position of Qingdao Haier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corsair Gaming and Qingdao Haier.
Diversification Opportunities for Corsair Gaming and Qingdao Haier
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Corsair and Qingdao is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Corsair Gaming and Qingdao Haier Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Haier and Corsair Gaming 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 Corsair Gaming are associated (or correlated) with Qingdao Haier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Haier has no effect on the direction of Corsair Gaming i.e., Corsair Gaming and Qingdao Haier go up and down completely randomly.
Pair Corralation between Corsair Gaming and Qingdao Haier
Assuming the 90 days horizon Corsair Gaming is expected to generate 1.82 times more return on investment than Qingdao Haier. However, Corsair Gaming is 1.82 times more volatile than Qingdao Haier Co. It trades about 0.18 of its potential returns per unit of risk. Qingdao Haier Co is currently generating about 0.06 per unit of risk. If you would invest 659.00 in Corsair Gaming on September 14, 2024 and sell it today you would earn a total of 96.00 from holding Corsair Gaming or generate 14.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corsair Gaming vs. Qingdao Haier Co
Performance |
| Timeline |
| Corsair Gaming |
| Qingdao Haier |
Corsair Gaming and Qingdao Haier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corsair Gaming and Qingdao Haier
The main advantage of trading using opposite Corsair Gaming and Qingdao Haier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corsair Gaming position performs unexpectedly, Qingdao Haier 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 Qingdao Haier will offset losses from the drop in Qingdao Haier's long position.| Corsair Gaming vs. Datalogic SpA | Corsair Gaming vs. Superior Plus Corp | Corsair Gaming vs. SIVERS SEMICONDUCTORS AB | Corsair Gaming vs. NorAm Drilling AS |
| Qingdao Haier vs. Corsair Gaming | Qingdao Haier vs. SYSTEMAIR AB | Qingdao Haier vs. DELTA AIR LINES | Qingdao Haier vs. INTER CARS SA |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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