Correlation Between QINGCI GAMES and BJs Restaurants
Can any of the company-specific risk be diversified away by investing in both QINGCI GAMES and BJs Restaurants 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 BJs Restaurants 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 BJs Restaurants, you can compare the effects of market volatilities on QINGCI GAMES and BJs Restaurants 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 BJs Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of QINGCI GAMES and BJs Restaurants.
Diversification Opportunities for QINGCI GAMES and BJs Restaurants
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between QINGCI and BJs is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding QINGCI GAMES INC and BJs Restaurants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJs Restaurants 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 BJs Restaurants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BJs Restaurants has no effect on the direction of QINGCI GAMES i.e., QINGCI GAMES and BJs Restaurants go up and down completely randomly.
Pair Corralation between QINGCI GAMES and BJs Restaurants
Assuming the 90 days horizon QINGCI GAMES INC is expected to under-perform the BJs Restaurants. In addition to that, QINGCI GAMES is 1.22 times more volatile than BJs Restaurants. It trades about -0.05 of its total potential returns per unit of risk. BJs Restaurants is currently generating about 0.03 per unit of volatility. If you would invest 2,760 in BJs Restaurants on September 12, 2024 and sell it today you would earn a total of 580.00 from holding BJs Restaurants or generate 21.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
QINGCI GAMES INC vs. BJs Restaurants
Performance |
| Timeline |
| QINGCI GAMES INC |
| BJs Restaurants |
QINGCI GAMES and BJs Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QINGCI GAMES and BJs Restaurants
The main advantage of trading using opposite QINGCI GAMES and BJs Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QINGCI GAMES position performs unexpectedly, BJs Restaurants 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 BJs Restaurants will offset losses from the drop in BJs Restaurants' long position.| QINGCI GAMES vs. NEXON Co | QINGCI GAMES vs. Take Two Interactive Software | QINGCI GAMES vs. Superior Plus Corp | QINGCI GAMES vs. SIVERS SEMICONDUCTORS AB |
| BJs Restaurants vs. Apple Inc | BJs Restaurants vs. Apple Inc | BJs Restaurants vs. Apple Inc | BJs Restaurants vs. Apple Inc |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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