Correlation Between XinJiang GuoTong and Qilu Bank
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Qilu Bank Co, you can compare the effects of market volatilities on XinJiang GuoTong 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 XinJiang GuoTong with a short position of Qilu Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Qilu Bank.
Diversification Opportunities for XinJiang GuoTong and Qilu Bank
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between XinJiang and Qilu is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and Qilu Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qilu Bank and XinJiang GuoTong 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 XinJiang GuoTong Pipeline 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 XinJiang GuoTong i.e., XinJiang GuoTong and Qilu Bank go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Qilu Bank
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to generate 1.41 times more return on investment than Qilu Bank. However, XinJiang GuoTong is 1.41 times more volatile than Qilu Bank Co. It trades about 0.06 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 749.00 in XinJiang GuoTong Pipeline on September 3, 2024 and sell it today you would earn a total of 157.00 from holding XinJiang GuoTong Pipeline or generate 20.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Qilu Bank Co
Performance |
| Timeline |
| XinJiang GuoTong Pipeline |
| Qilu Bank |
XinJiang GuoTong and Qilu Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XinJiang GuoTong and Qilu Bank
The main advantage of trading using opposite XinJiang GuoTong and Qilu Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong 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.| XinJiang GuoTong vs. Iat Automobile Technology | XinJiang GuoTong vs. Sinomach Automobile Co | XinJiang GuoTong vs. Guangzhou Automobile Group | XinJiang GuoTong vs. Ningxia Younglight Chemicals |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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