Correlation Between Qilu Bank and Chengdu Spaceon
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By analyzing existing cross correlation between Qilu Bank Co and Chengdu Spaceon Electronics, you can compare the effects of market volatilities on Qilu Bank and Chengdu Spaceon 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 Chengdu Spaceon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qilu Bank and Chengdu Spaceon.
Diversification Opportunities for Qilu Bank and Chengdu Spaceon
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qilu and Chengdu is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Qilu Bank Co and Chengdu Spaceon Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Spaceon Elec 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 Chengdu Spaceon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Spaceon Elec has no effect on the direction of Qilu Bank i.e., Qilu Bank and Chengdu Spaceon go up and down completely randomly.
Pair Corralation between Qilu Bank and Chengdu Spaceon
Assuming the 90 days trading horizon Qilu Bank Co is expected to generate 0.65 times more return on investment than Chengdu Spaceon. However, Qilu Bank Co is 1.55 times less risky than Chengdu Spaceon. It trades about -0.11 of its potential returns per unit of risk. Chengdu Spaceon Electronics is currently generating about -0.11 per unit of risk. If you would invest 540.00 in Qilu Bank Co on September 1, 2024 and sell it today you would lose (26.00) from holding Qilu Bank Co or give up 4.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qilu Bank Co vs. Chengdu Spaceon Electronics
Performance |
| Timeline |
| Qilu Bank |
| Chengdu Spaceon Elec |
Qilu Bank and Chengdu Spaceon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qilu Bank and Chengdu Spaceon
The main advantage of trading using opposite Qilu Bank and Chengdu Spaceon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qilu Bank position performs unexpectedly, Chengdu Spaceon 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 Chengdu Spaceon will offset losses from the drop in Chengdu Spaceon'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 |
| Chengdu Spaceon vs. Industrial and Commercial | Chengdu Spaceon vs. Kweichow Moutai Co | Chengdu Spaceon vs. Agricultural Bank of | Chengdu Spaceon vs. China Mobile Limited |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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