Correlation Between GigaMedia and QIIWI GAMES
Can any of the company-specific risk be diversified away by investing in both GigaMedia 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 GigaMedia and QIIWI GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GigaMedia and QIIWI GAMES AB, you can compare the effects of market volatilities on GigaMedia 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 GigaMedia with a short position of QIIWI GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of GigaMedia and QIIWI GAMES.
Diversification Opportunities for GigaMedia and QIIWI GAMES
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GigaMedia and QIIWI is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding GigaMedia 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 GigaMedia 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 GigaMedia 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 GigaMedia i.e., GigaMedia and QIIWI GAMES go up and down completely randomly.
Pair Corralation between GigaMedia and QIIWI GAMES
Assuming the 90 days trading horizon GigaMedia is expected to under-perform the QIIWI GAMES. But the stock apears to be less risky and, when comparing its historical volatility, GigaMedia is 9.46 times less risky than QIIWI GAMES. The stock trades about -0.11 of its potential returns per unit of risk. The QIIWI GAMES AB is currently generating about 0.35 of returns per unit of risk over similar time horizon. 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 |
GigaMedia vs. QIIWI GAMES AB
Performance |
| Timeline |
| GigaMedia |
| QIIWI GAMES AB |
GigaMedia and QIIWI GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GigaMedia and QIIWI GAMES
The main advantage of trading using opposite GigaMedia and QIIWI GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GigaMedia 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.| GigaMedia vs. ASSOC BR FOODS | GigaMedia vs. TYSON FOODS A | GigaMedia vs. ORMAT TECHNOLOGIES | GigaMedia vs. Amkor Technology |
| QIIWI GAMES vs. GOODYEAR T RUBBER | QIIWI GAMES vs. Chuangs China Investments | QIIWI GAMES vs. Apollo Investment Corp | QIIWI GAMES vs. The Yokohama Rubber |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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