Correlation Between Shenwu Energy and Qilu Bank
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By analyzing existing cross correlation between Shenwu Energy Saving and Qilu Bank Co, you can compare the effects of market volatilities on Shenwu Energy and Qilu Bank 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 Shenwu Energy with a short position of Qilu Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenwu Energy and Qilu Bank.
Diversification Opportunities for Shenwu Energy and Qilu Bank
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenwu and Qilu is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Shenwu Energy Saving and Qilu Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qilu Bank and Shenwu Energy 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 Shenwu Energy Saving are associated (or correlated) with Qilu Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qilu Bank has no effect on the direction of Shenwu Energy i.e., Shenwu Energy and Qilu Bank go up and down completely randomly.
Pair Corralation between Shenwu Energy and Qilu Bank
Assuming the 90 days trading horizon Shenwu Energy Saving is expected to generate 1.84 times more return on investment than Qilu Bank. However, Shenwu Energy is 1.84 times more volatile than Qilu Bank Co. It trades about 0.05 of its potential returns per unit of risk. Qilu Bank Co is currently generating about 0.05 per unit of risk. If you would invest 307.00 in Shenwu Energy Saving on September 3, 2024 and sell it today you would earn a total of 61.00 from holding Shenwu Energy Saving or generate 19.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenwu Energy Saving vs. Qilu Bank Co
Performance |
| Timeline |
| Shenwu Energy Saving |
| Qilu Bank |
Shenwu Energy and Qilu Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenwu Energy and Qilu Bank
The main advantage of trading using opposite Shenwu Energy and Qilu Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenwu Energy position performs unexpectedly, Qilu Bank 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 Qilu Bank will offset losses from the drop in Qilu Bank's long position.| Shenwu Energy vs. Shanghai Action Education | Shenwu Energy vs. Offcn Education Technology | Shenwu Energy vs. Hubeiyichang Transportation Group | Shenwu Energy vs. Shanghai Broadband Technology |
| Qilu Bank vs. Wintao Communications Co | Qilu Bank vs. JCHX Mining Management | Qilu Bank vs. Jilin Jlu Communication | Qilu Bank vs. Anhui Jianghuai Automobile |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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