Correlation Between Zotye Automobile and Qilu Bank
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By analyzing existing cross correlation between Zotye Automobile Co and Qilu Bank Co, you can compare the effects of market volatilities on Zotye Automobile 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 Zotye Automobile with a short position of Qilu Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Qilu Bank.
Diversification Opportunities for Zotye Automobile and Qilu Bank
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zotye and Qilu is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Qilu Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qilu Bank and Zotye Automobile 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 Zotye Automobile Co 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 Zotye Automobile i.e., Zotye Automobile and Qilu Bank go up and down completely randomly.
Pair Corralation between Zotye Automobile and Qilu Bank
Assuming the 90 days trading horizon Zotye Automobile Co is expected to under-perform the Qilu Bank. In addition to that, Zotye Automobile is 2.44 times more volatile than Qilu Bank Co. It trades about 0.0 of its total potential returns per unit of risk. Qilu Bank Co is currently generating about 0.06 per unit of volatility. If you would invest 371.00 in Qilu Bank Co on September 14, 2024 and sell it today you would earn a total of 163.00 from holding Qilu Bank Co or generate 43.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zotye Automobile Co vs. Qilu Bank Co
Performance |
| Timeline |
| Zotye Automobile |
| Qilu Bank |
Zotye Automobile and Qilu Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Qilu Bank
The main advantage of trading using opposite Zotye Automobile and Qilu Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile 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.| Zotye Automobile vs. Cambricon Technologies Corp | Zotye Automobile vs. Loongson Technology Corp | Zotye Automobile vs. Shenzhen Fortune Trend | Zotye Automobile vs. Chongqing Road Bridge |
| Qilu Bank vs. Cultural Investment Holdings | Qilu Bank vs. Gome Telecom Equipment | Qilu Bank vs. Holitech Technology Co | Qilu Bank vs. Zotye Automobile Co |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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