Correlation Between Qilu Bank and Anhui Gujing
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By analyzing existing cross correlation between Qilu Bank Co and Anhui Gujing Distillery, you can compare the effects of market volatilities on Qilu Bank and Anhui Gujing 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 Anhui Gujing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qilu Bank and Anhui Gujing.
Diversification Opportunities for Qilu Bank and Anhui Gujing
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qilu and Anhui is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Qilu Bank Co and Anhui Gujing Distillery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Gujing Distillery 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 Anhui Gujing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Gujing Distillery has no effect on the direction of Qilu Bank i.e., Qilu Bank and Anhui Gujing go up and down completely randomly.
Pair Corralation between Qilu Bank and Anhui Gujing
Assuming the 90 days trading horizon Qilu Bank Co is expected to under-perform the Anhui Gujing. But the stock apears to be less risky and, when comparing its historical volatility, Qilu Bank Co is 1.42 times less risky than Anhui Gujing. The stock trades about -0.11 of its potential returns per unit of risk. The Anhui Gujing Distillery is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 18,841 in Anhui Gujing Distillery on September 1, 2024 and sell it today you would earn a total of 122.00 from holding Anhui Gujing Distillery or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qilu Bank Co vs. Anhui Gujing Distillery
Performance |
| Timeline |
| Qilu Bank |
| Anhui Gujing Distillery |
Qilu Bank and Anhui Gujing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qilu Bank and Anhui Gujing
The main advantage of trading using opposite Qilu Bank and Anhui Gujing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qilu Bank position performs unexpectedly, Anhui Gujing 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 Anhui Gujing will offset losses from the drop in Anhui Gujing's long position.| Qilu Bank vs. Anji Foodstuff Co | Qilu Bank vs. Duzhe Publishing Media | Qilu Bank vs. Southern PublishingMedia Co | Qilu Bank vs. Guilin Seamild Foods |
| Anhui Gujing vs. Will Semiconductor Co | Anhui Gujing vs. Zhongtong Guomai Communication | Anhui Gujing vs. Wuhan Yangtze Communication | Anhui Gujing vs. GRINM Semiconductor Materials |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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