Correlation Between Huatian Hotel and Qtone Education
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By analyzing existing cross correlation between Huatian Hotel Group and Qtone Education Group, you can compare the effects of market volatilities on Huatian Hotel and Qtone Education 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 Huatian Hotel with a short position of Qtone Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huatian Hotel and Qtone Education.
Diversification Opportunities for Huatian Hotel and Qtone Education
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Huatian and Qtone is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Huatian Hotel Group and Qtone Education Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qtone Education Group and Huatian Hotel 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 Huatian Hotel Group are associated (or correlated) with Qtone Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qtone Education Group has no effect on the direction of Huatian Hotel i.e., Huatian Hotel and Qtone Education go up and down completely randomly.
Pair Corralation between Huatian Hotel and Qtone Education
Assuming the 90 days trading horizon Huatian Hotel Group is expected to generate 0.82 times more return on investment than Qtone Education. However, Huatian Hotel Group is 1.22 times less risky than Qtone Education. It trades about -0.1 of its potential returns per unit of risk. Qtone Education Group is currently generating about -0.18 per unit of risk. If you would invest 347.00 in Huatian Hotel Group on October 30, 2024 and sell it today you would lose (44.00) from holding Huatian Hotel Group or give up 12.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huatian Hotel Group vs. Qtone Education Group
Performance |
| Timeline |
| Huatian Hotel Group |
| Qtone Education Group |
Huatian Hotel and Qtone Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huatian Hotel and Qtone Education
The main advantage of trading using opposite Huatian Hotel and Qtone Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huatian Hotel position performs unexpectedly, Qtone Education 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 Qtone Education will offset losses from the drop in Qtone Education's long position.| Huatian Hotel vs. Sharetronic Data Technology | Huatian Hotel vs. Anhui Jinhe Industrial | Huatian Hotel vs. Sinocelltech Group | Huatian Hotel vs. Cabio Biotech Wuhan |
| Qtone Education vs. Jinhe Biotechnology Co | Qtone Education vs. Shandong Sanyuan Biotechnology | Qtone Education vs. Anhui Transport Consulting | Qtone Education vs. CSSC Offshore Marine |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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