Correlation Between AIR PRODCHEMICALS and QINGCI GAMES

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

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

Diversification Opportunities for AIR PRODCHEMICALS and QINGCI GAMES

-0.32

Correlation Coefficient

AIR PRODCHEMICALS  QINGCI GAMES

Very good diversification

The 3 months correlation between AIR and QINGCI is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding AIR PRODCHEMICALS and QINGCI GAMES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QINGCI GAMES INC and AIR PRODCHEMICALS 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 AIR PRODCHEMICALS are associated (or correlated) with QINGCI GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QINGCI GAMES INC has no effect on the direction of AIR PRODCHEMICALS i.e., AIR PRODCHEMICALS and QINGCI GAMES go up and down completely randomly.

Pair Corralation between AIR PRODCHEMICALS and QINGCI GAMES

Assuming the 90 days trading horizon AIR PRODCHEMICALS is expected to under-perform the QINGCI GAMES. But the stock apears to be less risky and, when comparing its historical volatility, AIR PRODCHEMICALS is 3.02 times less risky than QINGCI GAMES. The stock trades about -0.04 of its potential returns per unit of risk. The QINGCI GAMES INC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  32.00  in QINGCI GAMES INC on December 21, 2024 and sell it today you would earn a total of  5.00  from holding QINGCI GAMES INC or generate 15.63% return on investment over 90 days.

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

AIR PRODCHEMICALS  vs.  QINGCI GAMES INC

AIR PRODCHEMICALS

Risk-Adjusted Performance

Very Weak

Over the last 90 days AIR PRODCHEMICALS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, AIR PRODCHEMICALS is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

QINGCI GAMES INC

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in QINGCI GAMES INC are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, QINGCI GAMES reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AIR PRODCHEMICALS and QINGCI GAMES

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

The idea behind AIR PRODCHEMICALS and QINGCI GAMES INC 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.