Correlation Between Shenzhen Glory and Quectel Wireless
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By analyzing existing cross correlation between Shenzhen Glory Medical and Quectel Wireless Solutions, you can compare the effects of market volatilities on Shenzhen Glory and Quectel Wireless 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 Shenzhen Glory with a short position of Quectel Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Glory and Quectel Wireless.
Diversification Opportunities for Shenzhen Glory and Quectel Wireless
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Quectel is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Glory Medical and Quectel Wireless Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quectel Wireless Sol and Shenzhen Glory 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 Shenzhen Glory Medical are associated (or correlated) with Quectel Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quectel Wireless Sol has no effect on the direction of Shenzhen Glory i.e., Shenzhen Glory and Quectel Wireless go up and down completely randomly.
Pair Corralation between Shenzhen Glory and Quectel Wireless
Assuming the 90 days trading horizon Shenzhen Glory Medical is expected to generate 1.17 times more return on investment than Quectel Wireless. However, Shenzhen Glory is 1.17 times more volatile than Quectel Wireless Solutions. It trades about 0.25 of its potential returns per unit of risk. Quectel Wireless Solutions is currently generating about -0.04 per unit of risk. If you would invest 319.00 in Shenzhen Glory Medical on September 5, 2024 and sell it today you would earn a total of 55.00 from holding Shenzhen Glory Medical or generate 17.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Glory Medical vs. Quectel Wireless Solutions
Performance |
| Timeline |
| Shenzhen Glory Medical |
| Quectel Wireless Sol |
Shenzhen Glory and Quectel Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Glory and Quectel Wireless
The main advantage of trading using opposite Shenzhen Glory and Quectel Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Glory position performs unexpectedly, Quectel Wireless 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 Quectel Wireless will offset losses from the drop in Quectel Wireless' long position.| Shenzhen Glory vs. New China Life | Shenzhen Glory vs. Ming Yang Smart | Shenzhen Glory vs. 159681 | Shenzhen Glory vs. 159005 |
| Quectel Wireless vs. Fujian Longzhou Transportation | Quectel Wireless vs. Maider Medical Industry | Quectel Wireless vs. Shenzhen Glory Medical | Quectel Wireless vs. Heilongjiang Transport Development |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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