Correlation Between IQIYI and Cinedigm Corp

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

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

Diversification Opportunities for IQIYI and Cinedigm Corp

0.56

Correlation Coefficient

IQIYI  Cinedigm Corp

Very weak diversification

The 3 months correlation between IQIYI and Cinedigm is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding iQIYI Inc and Cinedigm Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinedigm Corp and IQIYI 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 iQIYI Inc are associated (or correlated) with Cinedigm Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cinedigm Corp has no effect on the direction of IQIYI i.e., IQIYI and Cinedigm Corp go up and down completely randomly.

Pair Corralation between IQIYI and Cinedigm Corp

If you would invest  29.00  in Cinedigm Corp on October 1, 2024 and sell it today you would earn a total of  0.00  from holding Cinedigm Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	5.0%
Values	Daily Returns

iQIYI Inc  vs.  Cinedigm Corp

iQIYI Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days iQIYI Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Cinedigm Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cinedigm Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Cinedigm Corp is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with IQIYI and Cinedigm Corp

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

The idea behind iQIYI Inc and Cinedigm 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.

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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..