Correlation Between Qilu Bank and Shenzhen Mindray
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By analyzing existing cross correlation between Qilu Bank Co and Shenzhen Mindray Bio Medical, you can compare the effects of market volatilities on Qilu Bank and Shenzhen Mindray 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 Shenzhen Mindray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qilu Bank and Shenzhen Mindray.
Diversification Opportunities for Qilu Bank and Shenzhen Mindray
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qilu and Shenzhen is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Qilu Bank Co and Shenzhen Mindray Bio Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Mindray Bio 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 Shenzhen Mindray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Mindray Bio has no effect on the direction of Qilu Bank i.e., Qilu Bank and Shenzhen Mindray go up and down completely randomly.
Pair Corralation between Qilu Bank and Shenzhen Mindray
Assuming the 90 days trading horizon Qilu Bank Co is expected to under-perform the Shenzhen Mindray. In addition to that, Qilu Bank is 1.03 times more volatile than Shenzhen Mindray Bio Medical. It trades about -0.12 of its total potential returns per unit of risk. Shenzhen Mindray Bio Medical is currently generating about -0.08 per unit of volatility. If you would invest 27,660 in Shenzhen Mindray Bio Medical on August 29, 2024 and sell it today you would lose (1,002) from holding Shenzhen Mindray Bio Medical or give up 3.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qilu Bank Co vs. Shenzhen Mindray Bio Medical
Performance |
| Timeline |
| Qilu Bank |
| Shenzhen Mindray Bio |
Qilu Bank and Shenzhen Mindray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qilu Bank and Shenzhen Mindray
The main advantage of trading using opposite Qilu Bank and Shenzhen Mindray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qilu Bank position performs unexpectedly, Shenzhen Mindray 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 Shenzhen Mindray will offset losses from the drop in Shenzhen Mindray's long position.| Qilu Bank vs. Kweichow Moutai Co | Qilu Bank vs. Contemporary Amperex Technology | Qilu Bank vs. G bits Network Technology | Qilu Bank vs. BYD Co Ltd |
| Shenzhen Mindray vs. Xinjiang Baodi Mining | Shenzhen Mindray vs. Huaibei Mining Holdings | Shenzhen Mindray vs. Jilin Chemical Fibre | Shenzhen Mindray vs. Guizhou Chanhen Chemical |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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