Correlation Between Lufax Holding and QC Holdings
Can any of the company-specific risk be diversified away by investing in both Lufax Holding and QC Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Lufax Holding and QC Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lufax Holding and QC Holdings, you can compare the effects of market volatilities on Lufax Holding and QC Holdings 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 Lufax Holding with a short position of QC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lufax Holding and QC Holdings.
Diversification Opportunities for Lufax Holding and QC Holdings
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lufax and QCCO is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Lufax Holding and QC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QC Holdings and Lufax Holding 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 Lufax Holding are associated (or correlated) with QC Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QC Holdings has no effect on the direction of Lufax Holding i.e., Lufax Holding and QC Holdings go up and down completely randomly.
Pair Corralation between Lufax Holding and QC Holdings
If you would invest 60.00 in QC Holdings on August 27, 2024 and sell it today you would earn a total of 0.00 from holding QC Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Lufax Holding vs. QC Holdings
Performance |
| Timeline |
| Lufax Holding |
| QC Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lufax Holding and QC Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lufax Holding and QC Holdings
The main advantage of trading using opposite Lufax Holding and QC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lufax Holding position performs unexpectedly, QC Holdings 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 QC Holdings will offset losses from the drop in QC Holdings' long position.| Lufax Holding vs. SLM Corp | Lufax Holding vs. Orix Corp Ads | Lufax Holding vs. FirstCash | Lufax Holding vs. Medallion Financial Corp |
| QC Holdings vs. Provident Financial Holdings | QC Holdings vs. QCR Holdings | QC Holdings vs. FirstCash | QC Holdings vs. Penns Woods Bancorp |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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