Correlation Between QINGCI GAMES and BII Railway
Can any of the company-specific risk be diversified away by investing in both QINGCI GAMES and BII Railway 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 BII Railway 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 BII Railway Transportation, you can compare the effects of market volatilities on QINGCI GAMES and BII Railway 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 BII Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of QINGCI GAMES and BII Railway.
Diversification Opportunities for QINGCI GAMES and BII Railway
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between QINGCI and BII is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding QINGCI GAMES INC and BII Railway Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BII Railway Transpor 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 BII Railway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BII Railway Transpor has no effect on the direction of QINGCI GAMES i.e., QINGCI GAMES and BII Railway go up and down completely randomly.
Pair Corralation between QINGCI GAMES and BII Railway
Assuming the 90 days horizon QINGCI GAMES INC is expected to generate 1.91 times more return on investment than BII Railway. However, QINGCI GAMES is 1.91 times more volatile than BII Railway Transportation. It trades about 0.08 of its potential returns per unit of risk. BII Railway Transportation is currently generating about -0.06 per unit of risk. If you would invest 33.00 in QINGCI GAMES INC on October 25, 2024 and sell it today you would earn a total of 1.00 from holding QINGCI GAMES INC or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
QINGCI GAMES INC vs. BII Railway Transportation
Performance |
| Timeline |
| QINGCI GAMES INC |
| BII Railway Transpor |
QINGCI GAMES and BII Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QINGCI GAMES and BII Railway
The main advantage of trading using opposite QINGCI GAMES and BII Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QINGCI GAMES position performs unexpectedly, BII Railway 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 BII Railway will offset losses from the drop in BII Railway's long position.| QINGCI GAMES vs. WisdomTree Investments | QINGCI GAMES vs. Guangdong Investment Limited | QINGCI GAMES vs. MINCO SILVER | QINGCI GAMES vs. De Grey Mining |
| BII Railway vs. Ribbon Communications | BII Railway vs. Soken Chemical Engineering | BII Railway vs. CHEMICAL INDUSTRIES | BII Railway vs. CITIC Telecom International |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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