Correlation Between China Citic and Qtone Education
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By analyzing existing cross correlation between China Citic Bank and Qtone Education Group, you can compare the effects of market volatilities on China Citic 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 China Citic with a short position of Qtone Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Citic and Qtone Education.
Diversification Opportunities for China Citic and Qtone Education
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Qtone is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding China Citic Bank 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 China Citic 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 China Citic Bank 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 China Citic i.e., China Citic and Qtone Education go up and down completely randomly.
Pair Corralation between China Citic and Qtone Education
Assuming the 90 days trading horizon China Citic Bank is expected to generate 0.36 times more return on investment than Qtone Education. However, China Citic Bank is 2.77 times less risky than Qtone Education. It trades about 0.03 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 667.00 in China Citic Bank on August 29, 2024 and sell it today you would earn a total of 4.00 from holding China Citic Bank or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Citic Bank vs. Qtone Education Group
Performance |
| Timeline |
| China Citic Bank |
| Qtone Education Group |
China Citic and Qtone Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Citic and Qtone Education
The main advantage of trading using opposite China Citic and Qtone Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Citic 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.| China Citic vs. Agricultural Bank of | China Citic vs. Industrial and Commercial | China Citic vs. Bank of China | China Citic vs. China Construction Bank |
| Qtone Education vs. Lutian Machinery Co | Qtone Education vs. Changshu Tongrun Auto | Qtone Education vs. PetroChina Co Ltd | Qtone Education vs. Bank of China |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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