Correlation Between Qtone Education and Air China
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By analyzing existing cross correlation between Qtone Education Group and Air China Ltd, you can compare the effects of market volatilities on Qtone Education and Air China 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 Air China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qtone Education and Air China.
Diversification Opportunities for Qtone Education and Air China
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qtone and Air is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Qtone Education Group and Air China Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air China 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 Air China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air China has no effect on the direction of Qtone Education i.e., Qtone Education and Air China go up and down completely randomly.
Pair Corralation between Qtone Education and Air China
Assuming the 90 days trading horizon Qtone Education is expected to generate 2.73 times less return on investment than Air China. In addition to that, Qtone Education is 1.81 times more volatile than Air China Ltd. It trades about 0.08 of its total potential returns per unit of risk. Air China Ltd is currently generating about 0.39 per unit of volatility. If you would invest 743.00 in Air China Ltd on September 14, 2024 and sell it today you would earn a total of 136.00 from holding Air China Ltd or generate 18.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qtone Education Group vs. Air China Ltd
Performance |
| Timeline |
| Qtone Education Group |
| Air China |
Qtone Education and Air China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qtone Education and Air China
The main advantage of trading using opposite Qtone Education and Air China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qtone Education position performs unexpectedly, Air China 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 Air China will offset losses from the drop in Air China's long position.| Qtone Education vs. Ming Yang Smart | Qtone Education vs. 159681 | Qtone Education vs. 159005 | Qtone Education vs. Loctek Ergonomic Technology |
| Air China vs. China State Construction | Air China vs. Poly Real Estate | Air China vs. China Vanke Co | Air China vs. China Merchants Shekou |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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