Correlation Between RETAIL FOOD and QINGCI GAMES
Can any of the company-specific risk be diversified away by investing in both RETAIL FOOD 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 RETAIL FOOD and QINGCI GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RETAIL FOOD GROUP and QINGCI GAMES INC, you can compare the effects of market volatilities on RETAIL FOOD 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 RETAIL FOOD with a short position of QINGCI GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of RETAIL FOOD and QINGCI GAMES.
Diversification Opportunities for RETAIL FOOD and QINGCI GAMES
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between RETAIL and QINGCI is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding RETAIL FOOD GROUP 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 RETAIL FOOD 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 RETAIL FOOD GROUP 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 RETAIL FOOD i.e., RETAIL FOOD and QINGCI GAMES go up and down completely randomly.
Pair Corralation between RETAIL FOOD and QINGCI GAMES
Assuming the 90 days trading horizon RETAIL FOOD GROUP is expected to under-perform the QINGCI GAMES. In addition to that, RETAIL FOOD is 1.3 times more volatile than QINGCI GAMES INC. It trades about -0.24 of its total potential returns per unit of risk. QINGCI GAMES INC is currently generating about 0.36 per unit of volatility. If you would invest 29.00 in QINGCI GAMES INC on October 11, 2024 and sell it today you would earn a total of 5.00 from holding QINGCI GAMES INC or generate 17.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
RETAIL FOOD GROUP vs. QINGCI GAMES INC
Performance |
| Timeline |
| RETAIL FOOD GROUP |
| QINGCI GAMES INC |
RETAIL FOOD and QINGCI GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RETAIL FOOD and QINGCI GAMES
The main advantage of trading using opposite RETAIL FOOD and QINGCI GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RETAIL FOOD 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.| RETAIL FOOD vs. Take Two Interactive Software | RETAIL FOOD vs. VITEC SOFTWARE GROUP | RETAIL FOOD vs. OPERA SOFTWARE | RETAIL FOOD vs. Air Lease |
| QINGCI GAMES vs. Fast Retailing Co | QINGCI GAMES vs. Addtech AB | QINGCI GAMES vs. FLOW TRADERS LTD | QINGCI GAMES vs. RETAIL FOOD GROUP |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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