Correlation Between Qlife Holding and Media

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

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

Diversification Opportunities for Qlife Holding and Media

-0.16

Correlation Coefficient

Qlife Holding  Media

Good diversification

The 3 months correlation between Qlife and Media is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Qlife Holding AB and Media and Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media and Games and Qlife Holding 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 Qlife Holding AB are associated (or correlated) with Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media and Games has no effect on the direction of Qlife Holding i.e., Qlife Holding and Media go up and down completely randomly.

Pair Corralation between Qlife Holding and Media

Assuming the 90 days trading horizon Qlife Holding is expected to generate 2.67 times less return on investment than Media. In addition to that, Qlife Holding is 5.35 times more volatile than Media and Games. It trades about 0.0 of its total potential returns per unit of risk. Media and Games is currently generating about 0.06 per unit of volatility. If you would invest  1,739  in Media and Games on September 10, 2024 and sell it today you would earn a total of  2,466  from holding Media and Games or generate 141.81% return on investment over 90 days.

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

Qlife Holding AB  vs.  Media and Games

Qlife Holding AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Qlife Holding AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Media and Games

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Media and Games are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical and fundamental indicators, Media unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Qlife Holding and Media

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

The idea behind Qlife Holding AB and Media and Games 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.

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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..