Correlation Between Qudian and Vantage Towers
Can any of the company-specific risk be diversified away by investing in both Qudian and Vantage Towers 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 Vantage Towers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qudian Inc and Vantage Towers AG, you can compare the effects of market volatilities on Qudian and Vantage Towers 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 Vantage Towers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qudian and Vantage Towers.
Diversification Opportunities for Qudian and Vantage Towers
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qudian and Vantage is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Qudian Inc and Vantage Towers AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vantage Towers AG 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 Vantage Towers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vantage Towers AG has no effect on the direction of Qudian i.e., Qudian and Vantage Towers go up and down completely randomly.
Pair Corralation between Qudian and Vantage Towers
Allowing for the 90-day total investment horizon Qudian Inc is expected to generate 11.58 times more return on investment than Vantage Towers. However, Qudian is 11.58 times more volatile than Vantage Towers AG. It trades about 0.13 of its potential returns per unit of risk. Vantage Towers AG is currently generating about 0.1 per unit of risk. If you would invest 177.00 in Qudian Inc on November 2, 2024 and sell it today you would earn a total of 120.00 from holding Qudian Inc or generate 67.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 96.26% |
| Values | Daily Returns |
Qudian Inc vs. Vantage Towers AG
Performance |
| Timeline |
| Qudian Inc |
| Vantage Towers AG |
Qudian and Vantage Towers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qudian and Vantage Towers
The main advantage of trading using opposite Qudian and Vantage Towers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qudian position performs unexpectedly, Vantage Towers 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 Vantage Towers will offset losses from the drop in Vantage Towers' long position.The idea behind Qudian Inc and Vantage Towers AG 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.| Vantage Towers vs. Dine Brands Global | Vantage Towers vs. Coffee Holding Co | Vantage Towers vs. CAVA Group, | Vantage Towers vs. Wingstop |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |