Correlation Between Sinofibers Technology and Qilu Bank
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By analyzing existing cross correlation between Sinofibers Technology Co and Qilu Bank Co, you can compare the effects of market volatilities on Sinofibers Technology 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 Sinofibers Technology with a short position of Qilu Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinofibers Technology and Qilu Bank.
Diversification Opportunities for Sinofibers Technology and Qilu Bank
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sinofibers and Qilu is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Sinofibers Technology Co and Qilu Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qilu Bank and Sinofibers Technology 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 Sinofibers Technology Co 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 Sinofibers Technology i.e., Sinofibers Technology and Qilu Bank go up and down completely randomly.
Pair Corralation between Sinofibers Technology and Qilu Bank
Assuming the 90 days trading horizon Sinofibers Technology is expected to generate 1.02 times less return on investment than Qilu Bank. In addition to that, Sinofibers Technology is 1.75 times more volatile than Qilu Bank Co. It trades about 0.05 of its total potential returns per unit of risk. Qilu Bank Co is currently generating about 0.09 per unit of volatility. If you would invest 401.00 in Qilu Bank Co on November 3, 2024 and sell it today you would earn a total of 177.00 from holding Qilu Bank Co or generate 44.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinofibers Technology Co vs. Qilu Bank Co
Performance |
| Timeline |
| Sinofibers Technology |
| Qilu Bank |
Sinofibers Technology and Qilu Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinofibers Technology and Qilu Bank
The main advantage of trading using opposite Sinofibers Technology and Qilu Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinofibers Technology 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.| Sinofibers Technology vs. Anhui Shiny Electronic | Sinofibers Technology vs. JCHX Mining Management | Sinofibers Technology vs. Techshine Electronics Co | Sinofibers Technology vs. Ningbo Fujia Industrial |
| Qilu Bank vs. Hainan Haiqi Transportation | Qilu Bank vs. Jiangsu Jinling Sports | Qilu Bank vs. Hubeiyichang Transportation Group | Qilu Bank vs. Fiberhome Telecommunication Technologies |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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