Correlation Between QINGCI GAMES and CARGOJET INC
Can any of the company-specific risk be diversified away by investing in both QINGCI GAMES and CARGOJET INC 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 CARGOJET INC 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 CARGOJET INC VAR, you can compare the effects of market volatilities on QINGCI GAMES and CARGOJET INC 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 CARGOJET INC. Check out your portfolio center. Please also check ongoing floating volatility patterns of QINGCI GAMES and CARGOJET INC.
Diversification Opportunities for QINGCI GAMES and CARGOJET INC
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between QINGCI and CARGOJET is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding QINGCI GAMES INC and CARGOJET INC VAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARGOJET INC VAR 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 CARGOJET INC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CARGOJET INC VAR has no effect on the direction of QINGCI GAMES i.e., QINGCI GAMES and CARGOJET INC go up and down completely randomly.
Pair Corralation between QINGCI GAMES and CARGOJET INC
Assuming the 90 days horizon QINGCI GAMES INC is expected to under-perform the CARGOJET INC. But the stock apears to be less risky and, when comparing its historical volatility, QINGCI GAMES INC is 1.05 times less risky than CARGOJET INC. The stock trades about -0.06 of its potential returns per unit of risk. The CARGOJET INC VAR is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 7,550 in CARGOJET INC VAR on November 5, 2024 and sell it today you would earn a total of 0.00 from holding CARGOJET INC VAR or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
QINGCI GAMES INC vs. CARGOJET INC VAR
Performance |
Timeline |
QINGCI GAMES INC |
CARGOJET INC VAR |
QINGCI GAMES and CARGOJET INC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with QINGCI GAMES and CARGOJET INC
The main advantage of trading using opposite QINGCI GAMES and CARGOJET INC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QINGCI GAMES position performs unexpectedly, CARGOJET INC 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 CARGOJET INC will offset losses from the drop in CARGOJET INC'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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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