Correlation Between Guangzhou Jinyi and Quectel Wireless
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By analyzing existing cross correlation between Guangzhou Jinyi Media and Quectel Wireless Solutions, you can compare the effects of market volatilities on Guangzhou Jinyi 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 Guangzhou Jinyi with a short position of Quectel Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jinyi and Quectel Wireless.
Diversification Opportunities for Guangzhou Jinyi and Quectel Wireless
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guangzhou and Quectel is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jinyi Media 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 Guangzhou Jinyi 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 Guangzhou Jinyi Media 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 Guangzhou Jinyi i.e., Guangzhou Jinyi and Quectel Wireless go up and down completely randomly.
Pair Corralation between Guangzhou Jinyi and Quectel Wireless
Assuming the 90 days trading horizon Guangzhou Jinyi is expected to generate 13.17 times less return on investment than Quectel Wireless. But when comparing it to its historical volatility, Guangzhou Jinyi Media is 1.03 times less risky than Quectel Wireless. It trades about 0.01 of its potential returns per unit of risk. Quectel Wireless Solutions is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 3,366 in Quectel Wireless Solutions on October 29, 2024 and sell it today you would earn a total of 5,042 from holding Quectel Wireless Solutions or generate 149.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jinyi Media vs. Quectel Wireless Solutions
Performance |
| Timeline |
| Guangzhou Jinyi Media |
| Quectel Wireless Sol |
Guangzhou Jinyi and Quectel Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jinyi and Quectel Wireless
The main advantage of trading using opposite Guangzhou Jinyi and Quectel Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jinyi 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.| Guangzhou Jinyi vs. Hangzhou Arcvideo Technology | Guangzhou Jinyi vs. China Eastern Airlines | Guangzhou Jinyi vs. Lander Sports Development | Guangzhou Jinyi vs. Harson Trading China |
| Quectel Wireless vs. Shenzhen AV Display Co | Quectel Wireless vs. Marssenger Kitchenware Co | Quectel Wireless vs. Tieling Newcity Investment | Quectel Wireless vs. Caihong Display Devices |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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