Correlation Between Qilu Bank and Hubeiyichang Transportation
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By analyzing existing cross correlation between Qilu Bank Co and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on Qilu Bank and Hubeiyichang Transportation 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 Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qilu Bank and Hubeiyichang Transportation.
Diversification Opportunities for Qilu Bank and Hubeiyichang Transportation
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qilu and Hubeiyichang is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Qilu Bank Co and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation 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 Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of Qilu Bank i.e., Qilu Bank and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between Qilu Bank and Hubeiyichang Transportation
Assuming the 90 days trading horizon Qilu Bank Co is expected to under-perform the Hubeiyichang Transportation. In addition to that, Qilu Bank is 1.14 times more volatile than Hubeiyichang Transportation Group. It trades about -0.25 of its total potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about 0.26 per unit of volatility. If you would invest 508.00 in Hubeiyichang Transportation Group on September 5, 2024 and sell it today you would earn a total of 42.00 from holding Hubeiyichang Transportation Group or generate 8.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qilu Bank Co vs. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| Qilu Bank |
| Hubeiyichang Transportation |
Qilu Bank and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qilu Bank and Hubeiyichang Transportation
The main advantage of trading using opposite Qilu Bank and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qilu Bank position performs unexpectedly, Hubeiyichang Transportation 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 Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation's long position.| Qilu Bank vs. Industrial and Commercial | Qilu Bank vs. Agricultural Bank of | Qilu Bank vs. China Construction Bank | Qilu Bank vs. Bank of China |
| Hubeiyichang Transportation vs. Ming Yang Smart | Hubeiyichang Transportation vs. 159681 | Hubeiyichang Transportation vs. 159005 | Hubeiyichang Transportation vs. Loctek Ergonomic Technology |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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