Correlation Between Qilu Bank and Xiamen Bank
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By analyzing existing cross correlation between Qilu Bank Co and Xiamen Bank Co, you can compare the effects of market volatilities on Qilu Bank and Xiamen Bank 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 Xiamen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qilu Bank and Xiamen Bank.
Diversification Opportunities for Qilu Bank and Xiamen Bank
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qilu and Xiamen is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Qilu Bank Co and Xiamen Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen 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 Xiamen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Bank has no effect on the direction of Qilu Bank i.e., Qilu Bank and Xiamen Bank go up and down completely randomly.
Pair Corralation between Qilu Bank and Xiamen Bank
Assuming the 90 days trading horizon Qilu Bank Co is expected to generate 1.29 times more return on investment than Xiamen Bank. However, Qilu Bank is 1.29 times more volatile than Xiamen Bank Co. It trades about 0.06 of its potential returns per unit of risk. Xiamen Bank Co is currently generating about 0.03 per unit of risk. If you would invest 386.00 in Qilu Bank Co on August 25, 2024 and sell it today you would earn a total of 114.00 from holding Qilu Bank Co or generate 29.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qilu Bank Co vs. Xiamen Bank Co
Performance |
| Timeline |
| Qilu Bank |
| Xiamen Bank |
Qilu Bank and Xiamen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qilu Bank and Xiamen Bank
The main advantage of trading using opposite Qilu Bank and Xiamen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qilu Bank position performs unexpectedly, Xiamen Bank 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 Xiamen Bank will offset losses from the drop in Xiamen Bank's long position.| Qilu Bank vs. Lutian Machinery Co | Qilu Bank vs. Sinosteel Engineering and | Qilu Bank vs. Gansu Jiu Steel | Qilu Bank vs. GreenTech Environmental Co |
| Xiamen Bank vs. China Life Insurance | Xiamen Bank vs. Piotech Inc A | Xiamen Bank vs. Dongxing Sec Co | Xiamen Bank vs. Shanghai OPM Biosciences |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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