Correlation Between Western Metal and Qilu Bank
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By analyzing existing cross correlation between Western Metal Materials and Qilu Bank Co, you can compare the effects of market volatilities on Western Metal 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 Western Metal with a short position of Qilu Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Metal and Qilu Bank.
Diversification Opportunities for Western Metal and Qilu Bank
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Western and Qilu is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Western Metal Materials and Qilu Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qilu Bank and Western Metal 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 Western Metal Materials 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 Western Metal i.e., Western Metal and Qilu Bank go up and down completely randomly.
Pair Corralation between Western Metal and Qilu Bank
Assuming the 90 days trading horizon Western Metal Materials is expected to generate 1.35 times more return on investment than Qilu Bank. However, Western Metal is 1.35 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 0.07 per unit of risk. If you would invest 1,424 in Western Metal Materials on October 12, 2024 and sell it today you would earn a total of 291.00 from holding Western Metal Materials or generate 20.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Metal Materials vs. Qilu Bank Co
Performance |
| Timeline |
| Western Metal Materials |
| Qilu Bank |
Western Metal and Qilu Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Metal and Qilu Bank
The main advantage of trading using opposite Western Metal and Qilu Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Metal 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.| Western Metal vs. Anhui Deli Household | Western Metal vs. Zhangjiagang Freetrade Science | Western Metal vs. Chahua Modern Housewares | Western Metal vs. Tibet Huayu Mining |
| Qilu Bank vs. Shandong Publishing Media | Qilu Bank vs. Beijing Kaiwen Education | Qilu Bank vs. Jiangsu Financial Leasing | Qilu Bank vs. Peoples Insurance of |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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