Correlation Between Qyou Media and CGI

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

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

Diversification Opportunities for Qyou Media and CGI

-0.51

Correlation Coefficient

Qyou Media  CGI

Excellent diversification

The 3 months correlation between Qyou and CGI is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Qyou Media and CGI Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CGI Inc and Qyou Media 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 Qyou Media are associated (or correlated) with CGI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CGI Inc has no effect on the direction of Qyou Media i.e., Qyou Media and CGI go up and down completely randomly.

Pair Corralation between Qyou Media and CGI

Assuming the 90 days trading horizon Qyou Media is expected to under-perform the CGI. In addition to that, Qyou Media is 6.15 times more volatile than CGI Inc. It trades about -0.1 of its total potential returns per unit of risk. CGI Inc is currently generating about 0.06 per unit of volatility. If you would invest  15,447  in CGI Inc on August 8, 2024 and sell it today you would earn a total of  164.00  from holding CGI Inc or generate 1.06% return on investment over 90 days.

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

Qyou Media  vs.  CGI Inc

Qyou Media

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Qyou Media has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

CGI Inc

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CGI Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, CGI may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Qyou Media and CGI

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

The idea behind Qyou Media and CGI 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.