Correlation Between Qilu Bank and Beijing SuperMap
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By analyzing existing cross correlation between Qilu Bank Co and Beijing SuperMap Software, you can compare the effects of market volatilities on Qilu Bank and Beijing SuperMap 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 Beijing SuperMap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qilu Bank and Beijing SuperMap.
Diversification Opportunities for Qilu Bank and Beijing SuperMap
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qilu and Beijing is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Qilu Bank Co and Beijing SuperMap Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing SuperMap Software 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 Beijing SuperMap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing SuperMap Software has no effect on the direction of Qilu Bank i.e., Qilu Bank and Beijing SuperMap go up and down completely randomly.
Pair Corralation between Qilu Bank and Beijing SuperMap
Assuming the 90 days trading horizon Qilu Bank Co is expected to under-perform the Beijing SuperMap. But the stock apears to be less risky and, when comparing its historical volatility, Qilu Bank Co is 2.12 times less risky than Beijing SuperMap. The stock trades about -0.32 of its potential returns per unit of risk. The Beijing SuperMap Software is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,890 in Beijing SuperMap Software on September 4, 2024 and sell it today you would lose (40.00) from holding Beijing SuperMap Software or give up 2.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Qilu Bank Co vs. Beijing SuperMap Software
Performance |
| Timeline |
| Qilu Bank |
| Beijing SuperMap Software |
Qilu Bank and Beijing SuperMap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qilu Bank and Beijing SuperMap
The main advantage of trading using opposite Qilu Bank and Beijing SuperMap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qilu Bank position performs unexpectedly, Beijing SuperMap 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 Beijing SuperMap will offset losses from the drop in Beijing SuperMap's long position.| Qilu Bank vs. Ligao Foods CoLtd | Qilu Bank vs. Shanghai Ziyan Foods | Qilu Bank vs. Hua Xia Bank | Qilu Bank vs. Xiamen Bank Co |
| Beijing SuperMap vs. Tsingtao Brewery Co | Beijing SuperMap vs. Panda Financial Holding | Beijing SuperMap vs. Qilu Bank Co | Beijing SuperMap vs. HeNan Splendor Science |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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