Correlation Between Gome Telecom and Qilu Bank
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By analyzing existing cross correlation between Gome Telecom Equipment and Qilu Bank Co, you can compare the effects of market volatilities on Gome Telecom 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 Gome Telecom with a short position of Qilu Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Qilu Bank.
Diversification Opportunities for Gome Telecom and Qilu Bank
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gome and Qilu is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Qilu Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qilu Bank and Gome Telecom 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 Gome Telecom Equipment 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 Gome Telecom i.e., Gome Telecom and Qilu Bank go up and down completely randomly.
Pair Corralation between Gome Telecom and Qilu Bank
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to under-perform the Qilu Bank. In addition to that, Gome Telecom is 2.03 times more volatile than Qilu Bank Co. It trades about -0.06 of its total potential returns per unit of risk. Qilu Bank Co is currently generating about 0.06 per unit of volatility. If you would invest 371.00 in Qilu Bank Co on September 14, 2024 and sell it today you would earn a total of 163.00 from holding Qilu Bank Co or generate 43.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gome Telecom Equipment vs. Qilu Bank Co
Performance |
| Timeline |
| Gome Telecom Equipment |
| Qilu Bank |
Gome Telecom and Qilu Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Qilu Bank
The main advantage of trading using opposite Gome Telecom and Qilu Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom 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.| Gome Telecom vs. FSPG Hi Tech Co | Gome Telecom vs. Eastern Communications Co | Gome Telecom vs. Suzhou Xingye Material | Gome Telecom vs. Sichuan Jinshi Technology |
| Qilu Bank vs. Cultural Investment Holdings | Qilu Bank vs. Gome Telecom Equipment | Qilu Bank vs. Holitech Technology Co | Qilu Bank vs. Zotye Automobile 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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