Correlation Between Qilu Bank and China World
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By analyzing existing cross correlation between Qilu Bank Co and China World Trade, you can compare the effects of market volatilities on Qilu Bank and China World 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 China World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qilu Bank and China World.
Diversification Opportunities for Qilu Bank and China World
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Qilu and China is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Qilu Bank Co and China World Trade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China World Trade 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 China World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China World Trade has no effect on the direction of Qilu Bank i.e., Qilu Bank and China World go up and down completely randomly.
Pair Corralation between Qilu Bank and China World
Assuming the 90 days trading horizon Qilu Bank Co is expected to generate 1.0 times more return on investment than China World. However, Qilu Bank Co is 1.0 times less risky than China World. It trades about 0.07 of its potential returns per unit of risk. China World Trade is currently generating about 0.05 per unit of risk. If you would invest 354.00 in Qilu Bank Co on October 16, 2024 and sell it today you would earn a total of 179.00 from holding Qilu Bank Co or generate 50.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qilu Bank Co vs. China World Trade
Performance |
| Timeline |
| Qilu Bank |
| China World Trade |
Qilu Bank and China World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qilu Bank and China World
The main advantage of trading using opposite Qilu Bank and China World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qilu Bank position performs unexpectedly, China World 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 China World will offset losses from the drop in China World's long position.| Qilu Bank vs. Wuxi Chemical Equipment | Qilu Bank vs. Jinsanjiang Silicon Material | Qilu Bank vs. Jilin Chemical Fibre | Qilu Bank vs. Shenzhen Noposion Agrochemicals |
| China World vs. Qilu Bank Co | China World vs. Financial Street Holdings | China World vs. Harvest Fund Management | China World vs. Huaxia Fund Management |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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