Correlation Between Nanxing Furniture and Qtone Education
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nanxing Furniture Machinery and Qtone Education Group, you can compare the effects of market volatilities on Nanxing Furniture 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 Nanxing Furniture with a short position of Qtone Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanxing Furniture and Qtone Education.
Diversification Opportunities for Nanxing Furniture and Qtone Education
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nanxing and Qtone is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Nanxing Furniture Machinery 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 Nanxing Furniture 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 Nanxing Furniture Machinery 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 Nanxing Furniture i.e., Nanxing Furniture and Qtone Education go up and down completely randomly.
Pair Corralation between Nanxing Furniture and Qtone Education
Assuming the 90 days trading horizon Nanxing Furniture Machinery is expected to generate 1.7 times more return on investment than Qtone Education. However, Nanxing Furniture is 1.7 times more volatile than Qtone Education Group. It trades about 0.11 of its potential returns per unit of risk. Qtone Education Group is currently generating about -0.1 per unit of risk. If you would invest 1,558 in Nanxing Furniture Machinery on October 29, 2024 and sell it today you would earn a total of 137.00 from holding Nanxing Furniture Machinery or generate 8.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanxing Furniture Machinery vs. Qtone Education Group
Performance |
| Timeline |
| Nanxing Furniture |
| Qtone Education Group |
Nanxing Furniture and Qtone Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanxing Furniture and Qtone Education
The main advantage of trading using opposite Nanxing Furniture and Qtone Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanxing Furniture 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.| Nanxing Furniture vs. PetroChina Co Ltd | Nanxing Furniture vs. Industrial and Commercial | Nanxing Furniture vs. China Petroleum Chemical | Nanxing Furniture vs. China Construction Bank |
| Qtone Education vs. Linewell Software Co | Qtone Education vs. Zhejiang Yinlun Machinery | Qtone Education vs. China National Software | Qtone Education vs. Guangzhou KDT Machinery |
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.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |