Correlation Between Qilu Bank and Sinocat Environmental
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By analyzing existing cross correlation between Qilu Bank Co and Sinocat Environmental Technology, you can compare the effects of market volatilities on Qilu Bank and Sinocat Environmental 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 Qilu Bank with a short position of Sinocat Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qilu Bank and Sinocat Environmental.
Diversification Opportunities for Qilu Bank and Sinocat Environmental
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Qilu and Sinocat is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Qilu Bank Co and Sinocat Environmental Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocat Environmental and Qilu Bank 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 Qilu Bank Co are associated (or correlated) with Sinocat Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinocat Environmental has no effect on the direction of Qilu Bank i.e., Qilu Bank and Sinocat Environmental go up and down completely randomly.
Pair Corralation between Qilu Bank and Sinocat Environmental
Assuming the 90 days trading horizon Qilu Bank is expected to generate 3.08 times less return on investment than Sinocat Environmental. But when comparing it to its historical volatility, Qilu Bank Co is 1.87 times less risky than Sinocat Environmental. It trades about 0.18 of its potential returns per unit of risk. Sinocat Environmental Technology is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 1,185 in Sinocat Environmental Technology on September 15, 2024 and sell it today you would earn a total of 1,192 from holding Sinocat Environmental Technology or generate 100.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Qilu Bank Co vs. Sinocat Environmental Technolo
Performance |
Timeline |
Qilu Bank |
Sinocat Environmental |
Qilu Bank and Sinocat Environmental Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Qilu Bank and Sinocat Environmental
The main advantage of trading using opposite Qilu Bank and Sinocat Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qilu Bank position performs unexpectedly, Sinocat Environmental 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 Sinocat Environmental will offset losses from the drop in Sinocat Environmental's long position.Qilu Bank vs. Cultural Investment Holdings | Qilu Bank vs. Gome Telecom Equipment | Qilu Bank vs. Holitech Technology Co | Qilu Bank vs. Zotye Automobile Co |
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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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