Correlation Between GM and Qtone Education
Specify exactly 2 symbols:
By analyzing existing cross correlation between General Motors and Qtone Education Group, you can compare the effects of market volatilities on GM 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 GM with a short position of Qtone Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Qtone Education.
Diversification Opportunities for GM and Qtone Education
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GM and Qtone is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding General Motors 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 GM 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 General Motors 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 GM i.e., GM and Qtone Education go up and down completely randomly.
Pair Corralation between GM and Qtone Education
Allowing for the 90-day total investment horizon General Motors is expected to generate 0.71 times more return on investment than Qtone Education. However, General Motors is 1.4 times less risky than Qtone Education. It trades about 0.07 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 5,273 in General Motors on August 29, 2024 and sell it today you would earn a total of 206.00 from holding General Motors or generate 3.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. Qtone Education Group
Performance |
| Timeline |
| General Motors |
| Qtone Education Group |
GM and Qtone Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Qtone Education
The main advantage of trading using opposite GM and Qtone Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM 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.The idea behind General Motors and Qtone Education Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |