Correlation Between QINGCI GAMES and International Game
Can any of the company-specific risk be diversified away by investing in both QINGCI GAMES and International Game 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 QINGCI GAMES and International Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between QINGCI GAMES INC and International Game Technology, you can compare the effects of market volatilities on QINGCI GAMES and International Game 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 QINGCI GAMES with a short position of International Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of QINGCI GAMES and International Game.
Diversification Opportunities for QINGCI GAMES and International Game
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between QINGCI and International is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding QINGCI GAMES INC and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game and QINGCI GAMES 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 QINGCI GAMES INC are associated (or correlated) with International Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Game has no effect on the direction of QINGCI GAMES i.e., QINGCI GAMES and International Game go up and down completely randomly.
Pair Corralation between QINGCI GAMES and International Game
Assuming the 90 days horizon QINGCI GAMES INC is expected to generate 1.37 times more return on investment than International Game. However, QINGCI GAMES is 1.37 times more volatile than International Game Technology. It trades about -0.03 of its potential returns per unit of risk. International Game Technology is currently generating about -0.05 per unit of risk. If you would invest 46.00 in QINGCI GAMES INC on November 5, 2024 and sell it today you would lose (13.00) from holding QINGCI GAMES INC or give up 28.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
QINGCI GAMES INC vs. International Game Technology
Performance |
| Timeline |
| QINGCI GAMES INC |
| International Game |
QINGCI GAMES and International Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QINGCI GAMES and International Game
The main advantage of trading using opposite QINGCI GAMES and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QINGCI GAMES position performs unexpectedly, International Game 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 International Game will offset losses from the drop in International Game's long position.| QINGCI GAMES vs. FARM 51 GROUP | QINGCI GAMES vs. Dairy Farm International | QINGCI GAMES vs. Australian Agricultural | QINGCI GAMES vs. CVR Medical Corp |
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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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