Correlation Between Advanced Medical and QINGCI GAMES
Can any of the company-specific risk be diversified away by investing in both Advanced Medical 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 Advanced Medical and QINGCI GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advanced Medical Solutions and QINGCI GAMES INC, you can compare the effects of market volatilities on Advanced Medical 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 Advanced Medical with a short position of QINGCI GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Medical and QINGCI GAMES.
Diversification Opportunities for Advanced Medical and QINGCI GAMES
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Advanced and QINGCI is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Medical Solutions 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 Advanced Medical 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 Advanced Medical Solutions 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 Advanced Medical i.e., Advanced Medical and QINGCI GAMES go up and down completely randomly.
Pair Corralation between Advanced Medical and QINGCI GAMES
Assuming the 90 days trading horizon Advanced Medical Solutions is expected to generate 0.77 times more return on investment than QINGCI GAMES. However, Advanced Medical Solutions is 1.3 times less risky than QINGCI GAMES. It trades about 0.01 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 277.00 in Advanced Medical Solutions on November 1, 2024 and sell it today you would lose (27.00) from holding Advanced Medical Solutions or give up 9.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Advanced Medical Solutions vs. QINGCI GAMES INC
Performance |
| Timeline |
| Advanced Medical Sol |
| QINGCI GAMES INC |
Advanced Medical and QINGCI GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Medical and QINGCI GAMES
The main advantage of trading using opposite Advanced Medical and QINGCI GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Medical 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.| Advanced Medical vs. Compagnie Plastic Omnium | Advanced Medical vs. APPLIED MATERIALS | Advanced Medical vs. Hanison Construction Holdings | Advanced Medical vs. EAGLE MATERIALS |
| QINGCI GAMES vs. Merit Medical Systems | QINGCI GAMES vs. MeVis Medical Solutions | QINGCI GAMES vs. SCANDMEDICAL SOLDK 040 | QINGCI GAMES vs. Advanced Medical Solutions |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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