Correlation Between China World and Queclink Wireless
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By analyzing existing cross correlation between China World Trade and Queclink Wireless Solutions, you can compare the effects of market volatilities on China World and Queclink 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 China World with a short position of Queclink Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of China World and Queclink Wireless.
Diversification Opportunities for China World and Queclink Wireless
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Queclink is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding China World Trade and Queclink Wireless Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Queclink Wireless and China World 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 China World Trade are associated (or correlated) with Queclink Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Queclink Wireless has no effect on the direction of China World i.e., China World and Queclink Wireless go up and down completely randomly.
Pair Corralation between China World and Queclink Wireless
Assuming the 90 days trading horizon China World is expected to generate 3.07 times less return on investment than Queclink Wireless. But when comparing it to its historical volatility, China World Trade is 2.23 times less risky than Queclink Wireless. It trades about 0.07 of its potential returns per unit of risk. Queclink Wireless Solutions is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,393 in Queclink Wireless Solutions on September 4, 2024 and sell it today you would earn a total of 81.00 from holding Queclink Wireless Solutions or generate 5.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China World Trade vs. Queclink Wireless Solutions
Performance |
| Timeline |
| China World Trade |
| Queclink Wireless |
China World and Queclink Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China World and Queclink Wireless
The main advantage of trading using opposite China World and Queclink Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China World position performs unexpectedly, Queclink 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 Queclink Wireless will offset losses from the drop in Queclink Wireless' long position.| China World vs. Nanjing Putian Telecommunications | China World vs. Tianjin Realty Development | China World vs. Shenyang Huitian Thermal | China World vs. Shenzhen Changfang Light |
| Queclink Wireless vs. Industrial and Commercial | Queclink Wireless vs. China Construction Bank | Queclink Wireless vs. Bank of China | Queclink 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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