Correlation Between Qtone Education and Focus Media
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By analyzing existing cross correlation between Qtone Education Group and Focus Media Information, you can compare the effects of market volatilities on Qtone Education and Focus Media 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 Qtone Education with a short position of Focus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qtone Education and Focus Media.
Diversification Opportunities for Qtone Education and Focus Media
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qtone and Focus is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Qtone Education Group and Focus Media Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Focus Media Information and Qtone Education 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 Qtone Education Group are associated (or correlated) with Focus Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Focus Media Information has no effect on the direction of Qtone Education i.e., Qtone Education and Focus Media go up and down completely randomly.
Pair Corralation between Qtone Education and Focus Media
Assuming the 90 days trading horizon Qtone Education Group is expected to generate 1.94 times more return on investment than Focus Media. However, Qtone Education is 1.94 times more volatile than Focus Media Information. It trades about 0.03 of its potential returns per unit of risk. Focus Media Information is currently generating about 0.05 per unit of risk. If you would invest 608.00 in Qtone Education Group on September 12, 2024 and sell it today you would earn a total of 75.00 from holding Qtone Education Group or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qtone Education Group vs. Focus Media Information
Performance |
| Timeline |
| Qtone Education Group |
| Focus Media Information |
Qtone Education and Focus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qtone Education and Focus Media
The main advantage of trading using opposite Qtone Education and Focus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qtone Education position performs unexpectedly, Focus Media 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 Focus Media will offset losses from the drop in Focus Media's long position.| Qtone Education vs. Chengtun Mining Group | Qtone Education vs. Anji Foodstuff Co | Qtone Education vs. Guilin Seamild Foods | Qtone Education vs. Guangdong Jingyi Metal |
| Focus Media vs. Gansu Jiu Steel | Focus Media vs. Shandong Mining Machinery | Focus Media vs. Aba Chemicals Corp | Focus Media vs. BlueFocus Communication Group |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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