Correlation Between QINGCI GAMES and ETFS Coffee
Can any of the company-specific risk be diversified away by investing in both QINGCI GAMES and ETFS Coffee 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 ETFS Coffee 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 ETFS Coffee ETC, you can compare the effects of market volatilities on QINGCI GAMES and ETFS Coffee 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 ETFS Coffee. Check out your portfolio center. Please also check ongoing floating volatility patterns of QINGCI GAMES and ETFS Coffee.
Diversification Opportunities for QINGCI GAMES and ETFS Coffee
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between QINGCI and ETFS is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding QINGCI GAMES INC and ETFS Coffee ETC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETFS Coffee ETC 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 ETFS Coffee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETFS Coffee ETC has no effect on the direction of QINGCI GAMES i.e., QINGCI GAMES and ETFS Coffee go up and down completely randomly.
Pair Corralation between QINGCI GAMES and ETFS Coffee
Assuming the 90 days horizon QINGCI GAMES INC is expected to under-perform the ETFS Coffee. But the stock apears to be less risky and, when comparing its historical volatility, QINGCI GAMES INC is 13.03 times less risky than ETFS Coffee. The stock trades about -0.01 of its potential returns per unit of risk. The ETFS Coffee ETC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 97.00 in ETFS Coffee ETC on October 19, 2024 and sell it today you would earn a total of 5,284 from holding ETFS Coffee ETC or generate 5447.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.8% |
| Values | Daily Returns |
QINGCI GAMES INC vs. ETFS Coffee ETC
Performance |
| Timeline |
| QINGCI GAMES INC |
| ETFS Coffee ETC |
QINGCI GAMES and ETFS Coffee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QINGCI GAMES and ETFS Coffee
The main advantage of trading using opposite QINGCI GAMES and ETFS Coffee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QINGCI GAMES position performs unexpectedly, ETFS Coffee 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 ETFS Coffee will offset losses from the drop in ETFS Coffee's long position.| QINGCI GAMES vs. CN MODERN DAIRY | QINGCI GAMES vs. SENECA FOODS A | QINGCI GAMES vs. Performance Food Group | QINGCI GAMES vs. COFCO Joycome Foods |
| ETFS Coffee vs. CANON MARKETING JP | ETFS Coffee vs. Entravision Communications | ETFS Coffee vs. H2O Retailing | ETFS Coffee vs. TRADEDOUBLER AB SK |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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