Correlation Between Qilu Bank and Ningbo MedicalSystem
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By analyzing existing cross correlation between Qilu Bank Co and Ningbo MedicalSystem Biotechnology, you can compare the effects of market volatilities on Qilu Bank and Ningbo MedicalSystem 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 Ningbo MedicalSystem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qilu Bank and Ningbo MedicalSystem.
Diversification Opportunities for Qilu Bank and Ningbo MedicalSystem
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qilu and Ningbo is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Qilu Bank Co and Ningbo MedicalSystem Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo MedicalSystem 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 Ningbo MedicalSystem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo MedicalSystem has no effect on the direction of Qilu Bank i.e., Qilu Bank and Ningbo MedicalSystem go up and down completely randomly.
Pair Corralation between Qilu Bank and Ningbo MedicalSystem
Assuming the 90 days trading horizon Qilu Bank Co is expected to under-perform the Ningbo MedicalSystem. But the stock apears to be less risky and, when comparing its historical volatility, Qilu Bank Co is 1.64 times less risky than Ningbo MedicalSystem. The stock trades about -0.3 of its potential returns per unit of risk. The Ningbo MedicalSystem Biotechnology is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,082 in Ningbo MedicalSystem Biotechnology on September 3, 2024 and sell it today you would earn a total of 79.00 from holding Ningbo MedicalSystem Biotechnology or generate 7.3% 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. Ningbo MedicalSystem Biotechno
Performance |
| Timeline |
| Qilu Bank |
| Ningbo MedicalSystem |
Qilu Bank and Ningbo MedicalSystem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qilu Bank and Ningbo MedicalSystem
The main advantage of trading using opposite Qilu Bank and Ningbo MedicalSystem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qilu Bank position performs unexpectedly, Ningbo MedicalSystem 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 Ningbo MedicalSystem will offset losses from the drop in Ningbo MedicalSystem's long position.| Qilu Bank vs. Wintao Communications Co | Qilu Bank vs. JCHX Mining Management | Qilu Bank vs. Jilin Jlu Communication | Qilu Bank vs. Anhui Jianghuai Automobile |
| Ningbo MedicalSystem vs. Chengdu Kanghua Biological | Ningbo MedicalSystem vs. Beijing Wantai Biological | Ningbo MedicalSystem vs. Suzhou Novoprotein Scientific | Ningbo MedicalSystem vs. Aluminum Corp of |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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