Correlation Between Wenzhou Hongfeng and Quectel Wireless
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By analyzing existing cross correlation between Wenzhou Hongfeng Electrical and Quectel Wireless Solutions, you can compare the effects of market volatilities on Wenzhou Hongfeng 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 Wenzhou Hongfeng with a short position of Quectel Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wenzhou Hongfeng and Quectel Wireless.
Diversification Opportunities for Wenzhou Hongfeng and Quectel Wireless
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wenzhou and Quectel is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Wenzhou Hongfeng Electrical 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 Wenzhou Hongfeng 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 Wenzhou Hongfeng Electrical 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 Wenzhou Hongfeng i.e., Wenzhou Hongfeng and Quectel Wireless go up and down completely randomly.
Pair Corralation between Wenzhou Hongfeng and Quectel Wireless
Assuming the 90 days trading horizon Wenzhou Hongfeng Electrical is expected to under-perform the Quectel Wireless. But the stock apears to be less risky and, when comparing its historical volatility, Wenzhou Hongfeng Electrical is 1.4 times less risky than Quectel Wireless. The stock trades about -0.04 of its potential returns per unit of risk. The Quectel Wireless Solutions is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 6,490 in Quectel Wireless Solutions on October 24, 2024 and sell it today you would earn a total of 2,528 from holding Quectel Wireless Solutions or generate 38.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wenzhou Hongfeng Electrical vs. Quectel Wireless Solutions
Performance |
| Timeline |
| Wenzhou Hongfeng Ele |
| Quectel Wireless Sol |
Wenzhou Hongfeng and Quectel Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wenzhou Hongfeng and Quectel Wireless
The main advantage of trading using opposite Wenzhou Hongfeng and Quectel Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wenzhou Hongfeng 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.| Wenzhou Hongfeng vs. Qtone Education Group | Wenzhou Hongfeng vs. Hangzhou Arcvideo Technology | Wenzhou Hongfeng vs. Beijing Kaiwen Education | Wenzhou Hongfeng vs. AVIC Fund Management |
| Quectel Wireless vs. Jinling Hotel Corp | Quectel Wireless vs. Success Electronics | Quectel Wireless vs. Sihui Fuji Electronics | Quectel Wireless vs. Jiangyin Jianghua Microelectronics |
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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