Correlation Between Bank of China and Qilu Bank
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of China and Qilu Bank Co, you can compare the effects of market volatilities on Bank of China 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 Bank of China with a short position of Qilu Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Qilu Bank.
Diversification Opportunities for Bank of China and Qilu Bank
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Qilu is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Qilu Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qilu Bank and Bank of China 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 Bank of China 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 Bank of China i.e., Bank of China and Qilu Bank go up and down completely randomly.
Pair Corralation between Bank of China and Qilu Bank
Assuming the 90 days trading horizon Bank of China is expected to generate 0.6 times more return on investment than Qilu Bank. However, Bank of China is 1.66 times less risky than Qilu Bank. It trades about 0.19 of its potential returns per unit of risk. Qilu Bank Co is currently generating about -0.25 per unit of risk. If you would invest 489.00 in Bank of China on September 5, 2024 and sell it today you would earn a total of 20.00 from holding Bank of China or generate 4.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Qilu Bank Co
Performance |
| Timeline |
| Bank of China |
| Qilu Bank |
Bank of China and Qilu Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Qilu Bank
The main advantage of trading using opposite Bank of China and Qilu Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China 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.| Bank of China vs. Jafron Biomedical Co | Bank of China vs. Dezhan HealthCare Co | Bank of China vs. Ningbo Ligong Online | Bank of China vs. Guangzhou Boji Medical |
| Qilu Bank vs. Industrial and Commercial | Qilu Bank vs. Agricultural Bank of | Qilu Bank vs. China Construction Bank | Qilu Bank vs. Bank of China |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |