Correlation Between GAMING FAC and QIIWI GAMES
Can any of the company-specific risk be diversified away by investing in both GAMING FAC and QIIWI 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 GAMING FAC and QIIWI GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMING FAC SA and QIIWI GAMES AB, you can compare the effects of market volatilities on GAMING FAC and QIIWI 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 GAMING FAC with a short position of QIIWI GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMING FAC and QIIWI GAMES.
Diversification Opportunities for GAMING FAC and QIIWI GAMES
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between GAMING and QIIWI is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding GAMING FAC SA and QIIWI GAMES AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QIIWI GAMES AB and GAMING FAC 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 GAMING FAC SA are associated (or correlated) with QIIWI GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QIIWI GAMES AB has no effect on the direction of GAMING FAC i.e., GAMING FAC and QIIWI GAMES go up and down completely randomly.
Pair Corralation between GAMING FAC and QIIWI GAMES
Assuming the 90 days horizon GAMING FAC is expected to generate 2.07 times less return on investment than QIIWI GAMES. But when comparing it to its historical volatility, GAMING FAC SA is 1.11 times less risky than QIIWI GAMES. It trades about 0.07 of its potential returns per unit of risk. QIIWI GAMES AB is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 21.00 in QIIWI GAMES AB on August 27, 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAMING FAC SA vs. QIIWI GAMES AB
Performance |
| Timeline |
| GAMING FAC SA |
| QIIWI GAMES AB |
GAMING FAC and QIIWI GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMING FAC and QIIWI GAMES
The main advantage of trading using opposite GAMING FAC and QIIWI GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMING FAC position performs unexpectedly, QIIWI 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 QIIWI GAMES will offset losses from the drop in QIIWI GAMES's long position.The idea behind GAMING FAC SA and QIIWI GAMES AB 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.| QIIWI GAMES vs. PennyMac Mortgage Investment | QIIWI GAMES vs. PennantPark Investment | QIIWI GAMES vs. Gladstone Investment | QIIWI GAMES vs. FUYO GENERAL LEASE |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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