Correlation Between Cambricon Technologies and Qtone Education
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By analyzing existing cross correlation between Cambricon Technologies Corp and Qtone Education Group, you can compare the effects of market volatilities on Cambricon Technologies 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 Cambricon Technologies with a short position of Qtone Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambricon Technologies and Qtone Education.
Diversification Opportunities for Cambricon Technologies and Qtone Education
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cambricon and Qtone is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Cambricon Technologies Corp 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 Cambricon Technologies 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 Cambricon Technologies Corp 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 Cambricon Technologies i.e., Cambricon Technologies and Qtone Education go up and down completely randomly.
Pair Corralation between Cambricon Technologies and Qtone Education
Assuming the 90 days trading horizon Cambricon Technologies Corp is expected to generate 0.87 times more return on investment than Qtone Education. However, Cambricon Technologies Corp is 1.14 times less risky than Qtone Education. It trades about 0.4 of its potential returns per unit of risk. Qtone Education Group is currently generating about -0.12 per unit of risk. If you would invest 48,590 in Cambricon Technologies Corp on September 27, 2024 and sell it today you would earn a total of 17,620 from holding Cambricon Technologies Corp or generate 36.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cambricon Technologies Corp vs. Qtone Education Group
Performance |
| Timeline |
| Cambricon Technologies |
| Qtone Education Group |
Cambricon Technologies and Qtone Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambricon Technologies and Qtone Education
The main advantage of trading using opposite Cambricon Technologies and Qtone Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambricon Technologies 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.| Cambricon Technologies vs. Ming Yang Smart | Cambricon Technologies vs. 159681 | Cambricon Technologies vs. 159005 | Cambricon Technologies vs. Loctek Ergonomic Technology |
| Qtone Education vs. Cambricon Technologies Corp | Qtone Education vs. Loongson Technology Corp | Qtone Education vs. Shenzhen Fortune Trend | Qtone Education vs. Chongqing Road Bridge |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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