Correlation Between Shanghai Newtouch and Qtone Education
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By analyzing existing cross correlation between Shanghai Newtouch Software and Qtone Education Group, you can compare the effects of market volatilities on Shanghai Newtouch 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 Shanghai Newtouch with a short position of Qtone Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Newtouch and Qtone Education.
Diversification Opportunities for Shanghai Newtouch and Qtone Education
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Qtone is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Newtouch Software 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 Shanghai Newtouch 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 Shanghai Newtouch Software 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 Shanghai Newtouch i.e., Shanghai Newtouch and Qtone Education go up and down completely randomly.
Pair Corralation between Shanghai Newtouch and Qtone Education
Assuming the 90 days trading horizon Shanghai Newtouch Software is expected to generate 2.01 times more return on investment than Qtone Education. However, Shanghai Newtouch is 2.01 times more volatile than Qtone Education Group. It trades about 0.06 of its potential returns per unit of risk. Qtone Education Group is currently generating about -0.1 per unit of risk. If you would invest 1,727 in Shanghai Newtouch Software on October 29, 2024 and sell it today you would earn a total of 78.00 from holding Shanghai Newtouch Software or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Newtouch Software vs. Qtone Education Group
Performance |
| Timeline |
| Shanghai Newtouch |
| Qtone Education Group |
Shanghai Newtouch and Qtone Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Newtouch and Qtone Education
The main advantage of trading using opposite Shanghai Newtouch and Qtone Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Newtouch 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.| Shanghai Newtouch vs. Cultural Investment Holdings | Shanghai Newtouch vs. Shengda Mining Co | Shanghai Newtouch vs. Jiangsu Yueda Investment | Shanghai Newtouch vs. Shanghai Yanpu Metal |
| Qtone Education vs. Linewell Software Co | Qtone Education vs. Zhejiang Yinlun Machinery | Qtone Education vs. China National Software | Qtone Education vs. Guangzhou KDT Machinery |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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