Correlation Between QINGCI GAMES and Penn National
Can any of the company-specific risk be diversified away by investing in both QINGCI GAMES and Penn National 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 Penn National 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 Penn National Gaming, you can compare the effects of market volatilities on QINGCI GAMES and Penn National 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 Penn National. Check out your portfolio center. Please also check ongoing floating volatility patterns of QINGCI GAMES and Penn National.
Diversification Opportunities for QINGCI GAMES and Penn National
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between QINGCI and Penn is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding QINGCI GAMES INC and Penn National Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penn National Gaming 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 Penn National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penn National Gaming has no effect on the direction of QINGCI GAMES i.e., QINGCI GAMES and Penn National go up and down completely randomly.
Pair Corralation between QINGCI GAMES and Penn National
Assuming the 90 days horizon QINGCI GAMES INC is expected to under-perform the Penn National. In addition to that, QINGCI GAMES is 1.13 times more volatile than Penn National Gaming. It trades about -0.02 of its total potential returns per unit of risk. Penn National Gaming is currently generating about 0.12 per unit of volatility. If you would invest 1,660 in Penn National Gaming on September 2, 2024 and sell it today you would earn a total of 324.00 from holding Penn National Gaming or generate 19.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
QINGCI GAMES INC vs. Penn National Gaming
Performance |
| Timeline |
| QINGCI GAMES INC |
| Penn National Gaming |
QINGCI GAMES and Penn National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QINGCI GAMES and Penn National
The main advantage of trading using opposite QINGCI GAMES and Penn National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QINGCI GAMES position performs unexpectedly, Penn National 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 Penn National will offset losses from the drop in Penn National's long position.| QINGCI GAMES vs. Nintendo Co | QINGCI GAMES vs. Sea Limited | QINGCI GAMES vs. Superior Plus Corp | QINGCI GAMES vs. NMI Holdings |
| Penn National vs. Superior Plus Corp | Penn National vs. NMI Holdings | Penn National vs. Origin Agritech | Penn National vs. SIVERS SEMICONDUCTORS AB |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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