Correlation Between QINGCI GAMES and Sixt SE

Can any of the company-specific risk be diversified away by investing in both QINGCI GAMES and Sixt SE 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 Sixt SE 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 Sixt SE, you can compare the effects of market volatilities on QINGCI GAMES and Sixt SE 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 Sixt SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of QINGCI GAMES and Sixt SE.

Diversification Opportunities for QINGCI GAMES and Sixt SE

0.34

Correlation Coefficient

QINGCI GAMES  Sixt SE

Weak diversification

The 3 months correlation between QINGCI and Sixt is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding QINGCI GAMES INC and Sixt SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixt SE 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 Sixt SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixt SE has no effect on the direction of QINGCI GAMES i.e., QINGCI GAMES and Sixt SE go up and down completely randomly.

Pair Corralation between QINGCI GAMES and Sixt SE

Assuming the 90 days horizon QINGCI GAMES is expected to generate 1.23 times less return on investment than Sixt SE. In addition to that, QINGCI GAMES is 2.59 times more volatile than Sixt SE. It trades about 0.02 of its total potential returns per unit of risk. Sixt SE is currently generating about 0.07 per unit of volatility. If you would invest  7,725  in Sixt SE on December 29, 2024 and sell it today you would earn a total of  505.00  from holding Sixt SE or generate 6.54% 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.  Sixt SE

QINGCI GAMES INC

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in QINGCI GAMES INC are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, QINGCI GAMES is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Sixt SE

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Sixt SE are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Sixt SE may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with QINGCI GAMES and Sixt SE

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

The idea behind QINGCI GAMES INC and Sixt SE 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..