Correlation Between Qudian and QC Holdings
Can any of the company-specific risk be diversified away by investing in both Qudian 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 Qudian and QC Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qudian Inc and QC Holdings, you can compare the effects of market volatilities on Qudian 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 Qudian with a short position of QC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qudian and QC Holdings.
Diversification Opportunities for Qudian and QC Holdings
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Qudian and QCCO is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Qudian Inc and QC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QC Holdings and Qudian 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 Qudian Inc 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 Qudian i.e., Qudian and QC Holdings go up and down completely randomly.
Pair Corralation between Qudian and QC Holdings
If you would invest 235.00 in Qudian Inc on August 31, 2024 and sell it today you would earn a total of 69.00 from holding Qudian Inc or generate 29.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Qudian Inc vs. QC Holdings
Performance |
| Timeline |
| Qudian Inc |
| QC Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Qudian and QC Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qudian and QC Holdings
The main advantage of trading using opposite Qudian and QC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qudian 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.| Qudian vs. X Financial Class | Qudian vs. FinVolution Group | Qudian vs. Senmiao Technology | Qudian vs. Lexinfintech Holdings |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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