Correlation Between Gansu Jiu and Quectel Wireless
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gansu Jiu Steel and Quectel Wireless Solutions, you can compare the effects of market volatilities on Gansu Jiu 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 Gansu Jiu with a short position of Quectel Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Quectel Wireless.
Diversification Opportunities for Gansu Jiu and Quectel Wireless
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Quectel is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel 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 Gansu Jiu 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 Gansu Jiu Steel 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 Gansu Jiu i.e., Gansu Jiu and Quectel Wireless go up and down completely randomly.
Pair Corralation between Gansu Jiu and Quectel Wireless
Assuming the 90 days trading horizon Gansu Jiu is expected to generate 13.27 times less return on investment than Quectel Wireless. But when comparing it to its historical volatility, Gansu Jiu Steel is 2.02 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 0.07 of returns per unit of risk over similar time horizon. If you would invest 5,616 in Quectel Wireless Solutions on September 12, 2024 and sell it today you would earn a total of 319.00 from holding Quectel Wireless Solutions or generate 5.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Quectel Wireless Solutions
Performance |
| Timeline |
| Gansu Jiu Steel |
| Quectel Wireless Sol |
Gansu Jiu and Quectel Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Quectel Wireless
The main advantage of trading using opposite Gansu Jiu and Quectel Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu 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.| Gansu Jiu vs. Zijin Mining Group | Gansu Jiu vs. Wanhua Chemical Group | Gansu Jiu vs. Baoshan Iron Steel | Gansu Jiu vs. Rongsheng Petrochemical Co |
| Quectel Wireless vs. Gansu Jiu Steel | Quectel Wireless vs. Shandong Mining Machinery | Quectel Wireless vs. Aba Chemicals Corp | Quectel Wireless vs. BlueFocus Communication Group |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |