Correlation Between Bank of Communications and Qtone Education
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By analyzing existing cross correlation between Bank of Communications and Qtone Education Group, you can compare the effects of market volatilities on Bank of Communications 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 Bank of Communications with a short position of Qtone Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and Qtone Education.
Diversification Opportunities for Bank of Communications and Qtone Education
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and Qtone is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications 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 Bank of Communications 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 Bank of Communications 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 Bank of Communications i.e., Bank of Communications and Qtone Education go up and down completely randomly.
Pair Corralation between Bank of Communications and Qtone Education
Assuming the 90 days trading horizon Bank of Communications is expected to generate 0.36 times more return on investment than Qtone Education. However, Bank of Communications is 2.78 times less risky than Qtone Education. It trades about 0.08 of its potential returns per unit of risk. Qtone Education Group is currently generating about 0.03 per unit of risk. If you would invest 573.00 in Bank of Communications on September 4, 2024 and sell it today you would earn a total of 151.00 from holding Bank of Communications or generate 26.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Communications vs. Qtone Education Group
Performance |
| Timeline |
| Bank of Communications |
| Qtone Education Group |
Bank of Communications and Qtone Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and Qtone Education
The main advantage of trading using opposite Bank of Communications and Qtone Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications 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.| Bank of Communications vs. Ming Yang Smart | Bank of Communications vs. 159681 | Bank of Communications vs. 159005 | Bank of Communications vs. Loctek Ergonomic Technology |
| Qtone Education vs. Xinhua Winshare Publishing | Qtone Education vs. JCHX Mining Management | Qtone Education vs. Chengdu Spaceon Electronics | Qtone Education vs. Southern PublishingMedia Co |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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