Correlation Between QIIWI GAMES and GameStop Corp

Can any of the company-specific risk be diversified away by investing in both QIIWI GAMES and GameStop Corp 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 QIIWI GAMES and GameStop Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between QIIWI GAMES AB and GameStop Corp, you can compare the effects of market volatilities on QIIWI GAMES and GameStop Corp 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 QIIWI GAMES with a short position of GameStop Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of QIIWI GAMES and GameStop Corp.

Diversification Opportunities for QIIWI GAMES and GameStop Corp

0.69

Correlation Coefficient

QIIWI GAMES  GameStop Corp

Poor diversification

The 3 months correlation between QIIWI and GameStop is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding QIIWI GAMES AB and GameStop Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameStop Corp and QIIWI 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 QIIWI GAMES AB are associated (or correlated) with GameStop Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameStop Corp has no effect on the direction of QIIWI GAMES i.e., QIIWI GAMES and GameStop Corp go up and down completely randomly.

Pair Corralation between QIIWI GAMES and GameStop Corp

Assuming the 90 days horizon QIIWI GAMES AB is expected to generate 1.44 times more return on investment than GameStop Corp. However, QIIWI GAMES is 1.44 times more volatile than GameStop Corp. It trades about 0.35 of its potential returns per unit of risk. GameStop Corp is currently generating about 0.06 per unit of risk. If you would invest  20.00  in QIIWI GAMES AB on September 21, 2024 and sell it today you would earn a total of  10.00  from holding QIIWI GAMES AB or generate 50.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

QIIWI GAMES AB  vs.  GameStop Corp

QIIWI GAMES AB

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in QIIWI GAMES AB are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, QIIWI GAMES reported solid returns over the last few months and may actually be approaching a breakup point.

GameStop Corp

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GameStop Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, GameStop Corp reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with QIIWI GAMES and GameStop Corp

The main advantage of trading using opposite QIIWI GAMES and GameStop Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QIIWI GAMES position performs unexpectedly, GameStop Corp 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 GameStop Corp will offset losses from the drop in GameStop Corp's long position.

The idea behind QIIWI GAMES AB and GameStop Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.