Correlation Between PetroChina and Qilu Bank
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By analyzing existing cross correlation between PetroChina Co Ltd and Qilu Bank Co, you can compare the effects of market volatilities on PetroChina and Qilu 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 PetroChina with a short position of Qilu Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Qilu Bank.
Diversification Opportunities for PetroChina and Qilu Bank
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PetroChina and Qilu is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Qilu Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qilu Bank and PetroChina 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 PetroChina Co Ltd are associated (or correlated) with Qilu Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qilu Bank has no effect on the direction of PetroChina i.e., PetroChina and Qilu Bank go up and down completely randomly.
Pair Corralation between PetroChina and Qilu Bank
Assuming the 90 days trading horizon PetroChina is expected to generate 2.71 times less return on investment than Qilu Bank. In addition to that, PetroChina is 1.15 times more volatile than Qilu Bank Co. It trades about 0.04 of its total potential returns per unit of risk. Qilu Bank Co is currently generating about 0.14 per unit of volatility. If you would invest 502.00 in Qilu Bank Co on October 25, 2024 and sell it today you would earn a total of 40.00 from holding Qilu Bank Co or generate 7.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Qilu Bank Co
Performance |
| Timeline |
| PetroChina |
| Qilu Bank |
PetroChina and Qilu Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Qilu Bank
The main advantage of trading using opposite PetroChina and Qilu Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Qilu 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 Qilu Bank will offset losses from the drop in Qilu Bank's long position.| PetroChina vs. Anji Foodstuff Co | PetroChina vs. Puya Semiconductor Shanghai | PetroChina vs. Great Sun Foods Co | PetroChina vs. GRINM Semiconductor Materials |
| Qilu Bank vs. Bank of China | Qilu Bank vs. Kweichow Moutai Co | Qilu Bank vs. PetroChina Co Ltd | Qilu Bank vs. Bank of Communications |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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