Correlation Between Anhui Jianghuai and Quectel Wireless
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Quectel Wireless Solutions, you can compare the effects of market volatilities on Anhui Jianghuai 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 Anhui Jianghuai with a short position of Quectel Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Quectel Wireless.
Diversification Opportunities for Anhui Jianghuai and Quectel Wireless
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Anhui and Quectel is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile 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 Anhui Jianghuai 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 Anhui Jianghuai Automobile 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 Anhui Jianghuai i.e., Anhui Jianghuai and Quectel Wireless go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Quectel Wireless
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to under-perform the Quectel Wireless. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Jianghuai Automobile is 2.02 times less risky than Quectel Wireless. The stock trades about -0.21 of its potential returns per unit of risk. The Quectel Wireless Solutions is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 6,529 in Quectel Wireless Solutions on October 12, 2024 and sell it today you would earn a total of 271.00 from holding Quectel Wireless Solutions or generate 4.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. Quectel Wireless Solutions
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Quectel Wireless Sol |
Anhui Jianghuai and Quectel Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Quectel Wireless
The main advantage of trading using opposite Anhui Jianghuai and Quectel Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai 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.| Anhui Jianghuai vs. Changchun Engley Automobile | Anhui Jianghuai vs. King Strong New Material | Anhui Jianghuai vs. Western Metal Materials | Anhui Jianghuai vs. Guangzhou Tinci Materials |
| Quectel Wireless vs. Dareway Software Co | Quectel Wireless vs. Digital China Information | Quectel Wireless vs. East Money Information | Quectel Wireless vs. Dawning Information Industry |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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