Correlation Between BlueFocus Communication and Quectel Wireless
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By analyzing existing cross correlation between BlueFocus Communication Group and Quectel Wireless Solutions, you can compare the effects of market volatilities on BlueFocus Communication 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 BlueFocus Communication with a short position of Quectel Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlueFocus Communication and Quectel Wireless.
Diversification Opportunities for BlueFocus Communication and Quectel Wireless
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BlueFocus and Quectel is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding BlueFocus Communication Group 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 BlueFocus Communication 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 BlueFocus Communication Group 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 BlueFocus Communication i.e., BlueFocus Communication and Quectel Wireless go up and down completely randomly.
Pair Corralation between BlueFocus Communication and Quectel Wireless
Assuming the 90 days trading horizon BlueFocus Communication Group is expected to generate 1.65 times more return on investment than Quectel Wireless. However, BlueFocus Communication is 1.65 times more volatile than Quectel Wireless Solutions. It trades about 0.16 of its potential returns per unit of risk. Quectel Wireless Solutions is currently generating about 0.19 per unit of risk. If you would invest 954.00 in BlueFocus Communication Group on September 13, 2024 and sell it today you would earn a total of 199.00 from holding BlueFocus Communication Group or generate 20.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BlueFocus Communication Group vs. Quectel Wireless Solutions
Performance |
| Timeline |
| BlueFocus Communication |
| Quectel Wireless Sol |
BlueFocus Communication and Quectel Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlueFocus Communication and Quectel Wireless
The main advantage of trading using opposite BlueFocus Communication and Quectel Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlueFocus Communication 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.| BlueFocus Communication vs. BYD Co Ltd | BlueFocus Communication vs. China Mobile Limited | BlueFocus Communication vs. Agricultural Bank of | BlueFocus Communication vs. Industrial and Commercial |
| Quectel Wireless vs. Industrial and Commercial | Quectel Wireless vs. China Construction Bank | Quectel Wireless vs. Bank of China | Quectel Wireless vs. Agricultural Bank of |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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