Correlation Between Hainan Haiqi and Qilu Bank
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By analyzing existing cross correlation between Hainan Haiqi Transportation and Qilu Bank Co, you can compare the effects of market volatilities on Hainan Haiqi 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 Hainan Haiqi with a short position of Qilu Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and Qilu Bank.
Diversification Opportunities for Hainan Haiqi and Qilu Bank
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hainan and Qilu is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and Qilu Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qilu Bank and Hainan Haiqi 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 Hainan Haiqi Transportation 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 Hainan Haiqi i.e., Hainan Haiqi and Qilu Bank go up and down completely randomly.
Pair Corralation between Hainan Haiqi and Qilu Bank
Assuming the 90 days trading horizon Hainan Haiqi Transportation is expected to generate 2.17 times more return on investment than Qilu Bank. However, Hainan Haiqi is 2.17 times more volatile than Qilu Bank Co. It trades about 0.17 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 1,931 in Hainan Haiqi Transportation on September 5, 2024 and sell it today you would earn a total of 241.00 from holding Hainan Haiqi Transportation or generate 12.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Haiqi Transportation vs. Qilu Bank Co
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| Qilu Bank |
Hainan Haiqi and Qilu Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and Qilu Bank
The main advantage of trading using opposite Hainan Haiqi and Qilu Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi 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.| Hainan Haiqi vs. Xiwang Foodstuffs Co | Hainan Haiqi vs. Ningbo Ligong Online | Hainan Haiqi vs. Pengxin International Mining | Hainan Haiqi vs. V V Food |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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