Correlation Between QINGCI GAMES and NXP Semiconductors
Can any of the company-specific risk be diversified away by investing in both QINGCI GAMES and NXP Semiconductors 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 NXP Semiconductors 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 NXP Semiconductors NV, you can compare the effects of market volatilities on QINGCI GAMES and NXP Semiconductors 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 NXP Semiconductors. Check out your portfolio center. Please also check ongoing floating volatility patterns of QINGCI GAMES and NXP Semiconductors.
Diversification Opportunities for QINGCI GAMES and NXP Semiconductors
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between QINGCI and NXP is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding QINGCI GAMES INC and NXP Semiconductors NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NXP Semiconductors 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 NXP Semiconductors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NXP Semiconductors has no effect on the direction of QINGCI GAMES i.e., QINGCI GAMES and NXP Semiconductors go up and down completely randomly.
Pair Corralation between QINGCI GAMES and NXP Semiconductors
Assuming the 90 days horizon QINGCI GAMES INC is expected to under-perform the NXP Semiconductors. In addition to that, QINGCI GAMES is 1.42 times more volatile than NXP Semiconductors NV. It trades about -0.06 of its total potential returns per unit of risk. NXP Semiconductors NV is currently generating about -0.05 per unit of volatility. If you would invest 20,200 in NXP Semiconductors NV on November 7, 2024 and sell it today you would lose (400.00) from holding NXP Semiconductors NV or give up 1.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
QINGCI GAMES INC vs. NXP Semiconductors NV
Performance |
| Timeline |
| QINGCI GAMES INC |
| NXP Semiconductors |
QINGCI GAMES and NXP Semiconductors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QINGCI GAMES and NXP Semiconductors
The main advantage of trading using opposite QINGCI GAMES and NXP Semiconductors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QINGCI GAMES position performs unexpectedly, NXP Semiconductors 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 NXP Semiconductors will offset losses from the drop in NXP Semiconductors' long position.| QINGCI GAMES vs. ZhongAn Online P | QINGCI GAMES vs. Nordic Semiconductor ASA | QINGCI GAMES vs. Salesforce | QINGCI GAMES vs. CARSALESCOM |
| NXP Semiconductors vs. ePlay Digital | NXP Semiconductors vs. NORWEGIAN AIR SHUT | NXP Semiconductors vs. SOGECLAIR SA INH | NXP Semiconductors vs. Wizz Air Holdings |
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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