Correlation Between Shenzhen MYS and Qilu Bank
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By analyzing existing cross correlation between Shenzhen MYS Environmental and Qilu Bank Co, you can compare the effects of market volatilities on Shenzhen MYS 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 Shenzhen MYS with a short position of Qilu Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Qilu Bank.
Diversification Opportunities for Shenzhen MYS and Qilu Bank
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Qilu is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and Qilu Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qilu Bank and Shenzhen MYS 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 Shenzhen MYS Environmental 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 Shenzhen MYS i.e., Shenzhen MYS and Qilu Bank go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Qilu Bank
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 2.65 times more return on investment than Qilu Bank. However, Shenzhen MYS is 2.65 times more volatile than Qilu Bank Co. It trades about 0.28 of its potential returns per unit of risk. Qilu Bank Co is currently generating about -0.32 per unit of risk. If you would invest 309.00 in Shenzhen MYS Environmental on September 4, 2024 and sell it today you would earn a total of 81.00 from holding Shenzhen MYS Environmental or generate 26.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. Qilu Bank Co
Performance |
| Timeline |
| Shenzhen MYS Environ |
| Qilu Bank |
Shenzhen MYS and Qilu Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and Qilu Bank
The main advantage of trading using opposite Shenzhen MYS and Qilu Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS 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.| Shenzhen MYS vs. Qilu Bank Co | Shenzhen MYS vs. Shanghai Sanyou Medical | Shenzhen MYS vs. Guangzhou Boji Medical | Shenzhen MYS vs. Panda Financial Holding |
| Qilu Bank vs. Ligao Foods CoLtd | Qilu Bank vs. Shanghai Ziyan Foods | Qilu Bank vs. Hua Xia Bank | Qilu Bank vs. Xiamen Bank 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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