Correlation Between Jilin Jlu and Qilu Bank
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By analyzing existing cross correlation between Jilin Jlu Communication and Qilu Bank Co, you can compare the effects of market volatilities on Jilin Jlu 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 Jilin Jlu with a short position of Qilu Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Qilu Bank.
Diversification Opportunities for Jilin Jlu and Qilu Bank
Very poor diversification
The 3 months correlation between Jilin and Qilu is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Qilu Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qilu Bank and Jilin Jlu 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 Jilin Jlu Communication 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 Jilin Jlu i.e., Jilin Jlu and Qilu Bank go up and down completely randomly.
Pair Corralation between Jilin Jlu and Qilu Bank
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 2.06 times more return on investment than Qilu Bank. However, Jilin Jlu is 2.06 times more volatile than Qilu Bank Co. It trades about 0.19 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 851.00 in Jilin Jlu Communication on September 4, 2024 and sell it today you would earn a total of 110.00 from holding Jilin Jlu Communication or generate 12.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Jlu Communication vs. Qilu Bank Co
Performance |
| Timeline |
| Jilin Jlu Communication |
| Qilu Bank |
Jilin Jlu and Qilu Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Qilu Bank
The main advantage of trading using opposite Jilin Jlu and Qilu Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu 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.| Jilin Jlu vs. China Life Insurance | Jilin Jlu vs. Cinda Securities Co | Jilin Jlu vs. Piotech Inc A | Jilin Jlu vs. Dongxing Sec Co |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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