Correlation Between Hubeiyichang Transportation and Qilu Bank
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By analyzing existing cross correlation between Hubeiyichang Transportation Group and Qilu Bank Co, you can compare the effects of market volatilities on Hubeiyichang Transportation 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 Hubeiyichang Transportation with a short position of Qilu Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubeiyichang Transportation and Qilu Bank.
Diversification Opportunities for Hubeiyichang Transportation and Qilu Bank
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hubeiyichang and Qilu is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Hubeiyichang Transportation Gr and Qilu Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qilu Bank and Hubeiyichang Transportation 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 Hubeiyichang Transportation Group 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 Hubeiyichang Transportation i.e., Hubeiyichang Transportation and Qilu Bank go up and down completely randomly.
Pair Corralation between Hubeiyichang Transportation and Qilu Bank
Assuming the 90 days trading horizon Hubeiyichang Transportation Group is expected to generate 0.88 times more return on investment than Qilu Bank. However, Hubeiyichang Transportation Group is 1.14 times less risky than Qilu Bank. It trades about 0.26 of its potential returns per unit of risk. Qilu Bank Co is currently generating about -0.25 per unit of risk. If you would invest 508.00 in Hubeiyichang Transportation Group on September 5, 2024 and sell it today you would earn a total of 42.00 from holding Hubeiyichang Transportation Group or generate 8.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubeiyichang Transportation Gr vs. Qilu Bank Co
Performance |
| Timeline |
| Hubeiyichang Transportation |
| Qilu Bank |
Hubeiyichang Transportation and Qilu Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubeiyichang Transportation and Qilu Bank
The main advantage of trading using opposite Hubeiyichang Transportation and Qilu Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubeiyichang Transportation 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.| Hubeiyichang Transportation vs. Ming Yang Smart | Hubeiyichang Transportation vs. 159681 | Hubeiyichang Transportation vs. 159005 | Hubeiyichang Transportation vs. Loctek Ergonomic Technology |
| Qilu Bank vs. Industrial and Commercial | Qilu Bank vs. Agricultural Bank of | Qilu Bank vs. China Construction Bank | Qilu Bank vs. Bank of China |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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