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
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PetroChina and Qilu is 0.41. 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 Co Ltd is expected to generate 1.02 times more return on investment than Qilu Bank. However, PetroChina is 1.02 times more volatile than Qilu Bank Co. It trades about 0.22 of its potential returns per unit of risk. Qilu Bank Co is currently generating about -0.01 per unit of risk. If you would invest 800.00 in PetroChina Co Ltd on September 13, 2024 and sell it today you would earn a total of 45.00 from holding PetroChina Co Ltd or generate 5.62% 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. Ningxia Building Materials | PetroChina vs. Chongqing Sulian Plastic | PetroChina vs. Guangzhou Tinci Materials | PetroChina vs. Tianjin Pengling Rubber |
| Qilu Bank vs. Industrial Bank Co | Qilu Bank vs. Postal Savings Bank | Qilu Bank vs. Hua Xia Bank | Qilu Bank vs. Ping An Insurance |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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