Correlation Between Qilu Bank and Financial Street
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By analyzing existing cross correlation between Qilu Bank Co and Financial Street Holdings, you can compare the effects of market volatilities on Qilu Bank and Financial Street 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 Qilu Bank with a short position of Financial Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qilu Bank and Financial Street.
Diversification Opportunities for Qilu Bank and Financial Street
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Qilu and Financial is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Qilu Bank Co and Financial Street Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financial Street Holdings and Qilu Bank 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 Qilu Bank Co are associated (or correlated) with Financial Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financial Street Holdings has no effect on the direction of Qilu Bank i.e., Qilu Bank and Financial Street go up and down completely randomly.
Pair Corralation between Qilu Bank and Financial Street
Assuming the 90 days trading horizon Qilu Bank is expected to generate 1.24 times less return on investment than Financial Street. But when comparing it to its historical volatility, Qilu Bank Co is 1.82 times less risky than Financial Street. It trades about 0.07 of its potential returns per unit of risk. Financial Street Holdings is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 258.00 in Financial Street Holdings on October 13, 2024 and sell it today you would earn a total of 42.00 from holding Financial Street Holdings or generate 16.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qilu Bank Co vs. Financial Street Holdings
Performance |
| Timeline |
| Qilu Bank |
| Financial Street Holdings |
Qilu Bank and Financial Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qilu Bank and Financial Street
The main advantage of trading using opposite Qilu Bank and Financial Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qilu Bank position performs unexpectedly, Financial Street 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 Financial Street will offset losses from the drop in Financial Street's long position.| Qilu Bank vs. Anji Foodstuff Co | Qilu Bank vs. Shanghai Ziyan Foods | Qilu Bank vs. Anhui Transport Consulting | Qilu Bank vs. Yankershop Food Co |
| Financial Street vs. Changchun UP Optotech | Financial Street vs. HanS Laser Tech | Financial Street vs. Holitech Technology Co | Financial Street vs. Jinhe Biotechnology 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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