Correlation Between QINGCI GAMES and SMA Solar
Can any of the company-specific risk be diversified away by investing in both QINGCI GAMES and SMA Solar 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 SMA Solar 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 SMA Solar Technology, you can compare the effects of market volatilities on QINGCI GAMES and SMA Solar 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 SMA Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of QINGCI GAMES and SMA Solar.
Diversification Opportunities for QINGCI GAMES and SMA Solar
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between QINGCI and SMA is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding QINGCI GAMES INC and SMA Solar Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SMA Solar Technology 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 SMA Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SMA Solar Technology has no effect on the direction of QINGCI GAMES i.e., QINGCI GAMES and SMA Solar go up and down completely randomly.
Pair Corralation between QINGCI GAMES and SMA Solar
Assuming the 90 days horizon QINGCI GAMES INC is expected to generate 1.61 times more return on investment than SMA Solar. However, QINGCI GAMES is 1.61 times more volatile than SMA Solar Technology. It trades about 0.07 of its potential returns per unit of risk. SMA Solar Technology is currently generating about 0.1 per unit of risk. If you would invest 33.00 in QINGCI GAMES INC on November 28, 2024 and sell it today you would earn a total of 2.00 from holding QINGCI GAMES INC or generate 6.06% 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. SMA Solar Technology
Performance |
Timeline |
QINGCI GAMES INC |
SMA Solar Technology |
QINGCI GAMES and SMA Solar Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with QINGCI GAMES and SMA Solar
The main advantage of trading using opposite QINGCI GAMES and SMA Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QINGCI GAMES position performs unexpectedly, SMA Solar 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 SMA Solar will offset losses from the drop in SMA Solar's long position.QINGCI GAMES vs. Magic Software Enterprises | QINGCI GAMES vs. GRIFFIN MINING LTD | QINGCI GAMES vs. SERI INDUSTRIAL EO | QINGCI GAMES vs. FORMPIPE SOFTWARE AB |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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