Correlation Between Qilu Bank and Jiujiang Shanshui
Specify exactly 2 symbols:
By analyzing existing cross correlation between Qilu Bank Co and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on Qilu Bank and Jiujiang Shanshui 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 Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qilu Bank and Jiujiang Shanshui.
Diversification Opportunities for Qilu Bank and Jiujiang Shanshui
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Qilu and Jiujiang is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Qilu Bank Co and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui 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 Jiujiang Shanshui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiujiang Shanshui has no effect on the direction of Qilu Bank i.e., Qilu Bank and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between Qilu Bank and Jiujiang Shanshui
Assuming the 90 days trading horizon Qilu Bank Co is expected to generate 1.59 times more return on investment than Jiujiang Shanshui. However, Qilu Bank is 1.59 times more volatile than Jiujiang Shanshui Technology. It trades about 0.17 of its potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about 0.16 per unit of risk. If you would invest 532.00 in Qilu Bank Co on November 7, 2024 and sell it today you would earn a total of 31.00 from holding Qilu Bank Co or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qilu Bank Co vs. Jiujiang Shanshui Technology
Performance |
| Timeline |
| Qilu Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jiujiang Shanshui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Qilu Bank and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qilu Bank and Jiujiang Shanshui
The main advantage of trading using opposite Qilu Bank and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qilu Bank position performs unexpectedly, Jiujiang Shanshui 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 Jiujiang Shanshui will offset losses from the drop in Jiujiang Shanshui's long position.The idea behind Qilu Bank Co and Jiujiang Shanshui Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |