Correlation Between Ningbo Tech-Bank and Qtone Education
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By analyzing existing cross correlation between Ningbo Tech Bank Co and Qtone Education Group, you can compare the effects of market volatilities on Ningbo Tech-Bank 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 Ningbo Tech-Bank with a short position of Qtone Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tech-Bank and Qtone Education.
Diversification Opportunities for Ningbo Tech-Bank and Qtone Education
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Qtone is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tech Bank Co 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 Ningbo Tech-Bank 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 Ningbo Tech Bank Co 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 Ningbo Tech-Bank i.e., Ningbo Tech-Bank and Qtone Education go up and down completely randomly.
Pair Corralation between Ningbo Tech-Bank and Qtone Education
Assuming the 90 days trading horizon Ningbo Tech Bank Co is expected to generate 0.8 times more return on investment than Qtone Education. However, Ningbo Tech Bank Co is 1.25 times less risky than Qtone Education. It trades about 0.16 of its potential returns per unit of risk. Qtone Education Group is currently generating about -0.08 per unit of risk. If you would invest 278.00 in Ningbo Tech Bank Co on November 3, 2024 and sell it today you would earn a total of 20.00 from holding Ningbo Tech Bank Co or generate 7.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tech Bank Co vs. Qtone Education Group
Performance |
| Timeline |
| Ningbo Tech Bank |
| Qtone Education Group |
Ningbo Tech-Bank and Qtone Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tech-Bank and Qtone Education
The main advantage of trading using opposite Ningbo Tech-Bank and Qtone Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tech-Bank 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.| Ningbo Tech-Bank vs. Qingdao Foods Co | Ningbo Tech-Bank vs. Shanghai Rightongene Biotechnology | Ningbo Tech-Bank vs. Youyou Foods Co | Ningbo Tech-Bank vs. JuneYao Dairy Co |
| Qtone Education vs. Bank of Suzhou | Qtone Education vs. Financial Street Holdings | Qtone Education vs. Sublime China Information | Qtone Education vs. Ping An Insurance |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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