Correlation Between Qilu Bank and HUAQIN TECHNOLOGY
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By analyzing existing cross correlation between Qilu Bank Co and HUAQIN TECHNOLOGY LTD, you can compare the effects of market volatilities on Qilu Bank and HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qilu Bank and HUAQIN TECHNOLOGY.
Diversification Opportunities for Qilu Bank and HUAQIN TECHNOLOGY
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Qilu and HUAQIN is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Qilu Bank Co and HUAQIN TECHNOLOGY LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUAQIN TECHNOLOGY LTD 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 HUAQIN TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUAQIN TECHNOLOGY LTD has no effect on the direction of Qilu Bank i.e., Qilu Bank and HUAQIN TECHNOLOGY go up and down completely randomly.
Pair Corralation between Qilu Bank and HUAQIN TECHNOLOGY
Assuming the 90 days trading horizon Qilu Bank is expected to generate 1.51 times less return on investment than HUAQIN TECHNOLOGY. But when comparing it to its historical volatility, Qilu Bank Co is 1.78 times less risky than HUAQIN TECHNOLOGY. It trades about 0.05 of its potential returns per unit of risk. HUAQIN TECHNOLOGY LTD is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5,128 in HUAQIN TECHNOLOGY LTD on October 16, 2024 and sell it today you would earn a total of 1,594 from holding HUAQIN TECHNOLOGY LTD or generate 31.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 72.8% |
| Values | Daily Returns |
Qilu Bank Co vs. HUAQIN TECHNOLOGY LTD
Performance |
| Timeline |
| Qilu Bank |
| HUAQIN TECHNOLOGY LTD |
Qilu Bank and HUAQIN TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qilu Bank and HUAQIN TECHNOLOGY
The main advantage of trading using opposite Qilu Bank and HUAQIN TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qilu Bank position performs unexpectedly, HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY will offset losses from the drop in HUAQIN TECHNOLOGY'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 |
| HUAQIN TECHNOLOGY vs. GRG Banking Equipment | HUAQIN TECHNOLOGY vs. Kuang Chi Technologies | HUAQIN TECHNOLOGY vs. Qilu Bank Co | HUAQIN TECHNOLOGY vs. Sharetronic Data Technology |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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