Correlation Between Shanghai Ziyan and Qilu Bank
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By analyzing existing cross correlation between Shanghai Ziyan Foods and Qilu Bank Co, you can compare the effects of market volatilities on Shanghai Ziyan 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 Shanghai Ziyan with a short position of Qilu Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Ziyan and Qilu Bank.
Diversification Opportunities for Shanghai Ziyan and Qilu Bank
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Qilu is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Ziyan Foods and Qilu Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qilu Bank and Shanghai Ziyan 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 Shanghai Ziyan Foods 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 Shanghai Ziyan i.e., Shanghai Ziyan and Qilu Bank go up and down completely randomly.
Pair Corralation between Shanghai Ziyan and Qilu Bank
Assuming the 90 days trading horizon Shanghai Ziyan Foods is expected to under-perform the Qilu Bank. In addition to that, Shanghai Ziyan is 1.14 times more volatile than Qilu Bank Co. It trades about -0.02 of its total potential returns per unit of risk. Qilu Bank Co is currently generating about 0.07 per unit of volatility. If you would invest 380.00 in Qilu Bank Co on September 4, 2024 and sell it today you would earn a total of 137.00 from holding Qilu Bank Co or generate 36.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Ziyan Foods vs. Qilu Bank Co
Performance |
| Timeline |
| Shanghai Ziyan Foods |
| Qilu Bank |
Shanghai Ziyan and Qilu Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Ziyan and Qilu Bank
The main advantage of trading using opposite Shanghai Ziyan and Qilu Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Ziyan 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.| Shanghai Ziyan vs. Holitech Technology Co | Shanghai Ziyan vs. Heilongjiang Transport Development | Shanghai Ziyan vs. Hainan Haiqi Transportation | Shanghai Ziyan vs. Hubei Forbon Technology |
| Qilu Bank vs. Ligao Foods CoLtd | Qilu Bank vs. Shanghai Ziyan Foods | Qilu Bank vs. Hua Xia Bank | Qilu Bank vs. Xiamen Bank Co |
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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