Correlation Between Qilu Bank and Hua Xia
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By analyzing existing cross correlation between Qilu Bank Co and Hua Xia Bank, you can compare the effects of market volatilities on Qilu Bank and Hua Xia 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 Hua Xia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qilu Bank and Hua Xia.
Diversification Opportunities for Qilu Bank and Hua Xia
Very poor diversification
The 3 months correlation between Qilu and Hua is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Qilu Bank Co and Hua Xia Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hua Xia Bank 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 Hua Xia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hua Xia Bank has no effect on the direction of Qilu Bank i.e., Qilu Bank and Hua Xia go up and down completely randomly.
Pair Corralation between Qilu Bank and Hua Xia
Assuming the 90 days trading horizon Qilu Bank Co is expected to under-perform the Hua Xia. But the stock apears to be less risky and, when comparing its historical volatility, Qilu Bank Co is 1.12 times less risky than Hua Xia. The stock trades about -0.32 of its potential returns per unit of risk. The Hua Xia Bank is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 715.00 in Hua Xia Bank on September 4, 2024 and sell it today you would earn a total of 28.00 from holding Hua Xia Bank or generate 3.92% 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. Hua Xia Bank
Performance |
| Timeline |
| Qilu Bank |
| Hua Xia Bank |
Qilu Bank and Hua Xia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qilu Bank and Hua Xia
The main advantage of trading using opposite Qilu Bank and Hua Xia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qilu Bank position performs unexpectedly, Hua Xia 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 Hua Xia will offset losses from the drop in Hua Xia'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 |
| Hua Xia vs. Xinjiang Communications Construction | Hua Xia vs. Shandong Publishing Media | Hua Xia vs. Southern PublishingMedia Co | Hua Xia vs. Eastern Communications Co |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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