Correlation Between Anhui Jianghuai and Qilu Bank
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Jianghuai Automobile and Qilu Bank Co, you can compare the effects of market volatilities on Anhui Jianghuai 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 Anhui Jianghuai with a short position of Qilu Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Qilu Bank.
Diversification Opportunities for Anhui Jianghuai and Qilu Bank
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Qilu is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Qilu Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qilu Bank and Anhui Jianghuai 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 Anhui Jianghuai Automobile 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 Anhui Jianghuai i.e., Anhui Jianghuai and Qilu Bank go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Qilu Bank
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 2.16 times more return on investment than Qilu Bank. However, Anhui Jianghuai is 2.16 times more volatile than Qilu Bank Co. It trades about 0.1 of its potential returns per unit of risk. Qilu Bank Co is currently generating about 0.06 per unit of risk. If you would invest 1,213 in Anhui Jianghuai Automobile on September 4, 2024 and sell it today you would earn a total of 2,403 from holding Anhui Jianghuai Automobile or generate 198.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. Qilu Bank Co
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Qilu Bank |
Anhui Jianghuai and Qilu Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Qilu Bank
The main advantage of trading using opposite Anhui Jianghuai and Qilu Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai 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.| Anhui Jianghuai vs. Industrial and Commercial | Anhui Jianghuai vs. China Construction Bank | Anhui Jianghuai vs. Agricultural Bank of | Anhui Jianghuai vs. Bank of China |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |