Correlation Between CITIC Metal and Quectel Wireless
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By analyzing existing cross correlation between CITIC Metal Co and Quectel Wireless Solutions, you can compare the effects of market volatilities on CITIC Metal 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 CITIC Metal with a short position of Quectel Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Metal and Quectel Wireless.
Diversification Opportunities for CITIC Metal and Quectel Wireless
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CITIC and Quectel is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Metal Co 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 CITIC Metal 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 CITIC Metal Co 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 CITIC Metal i.e., CITIC Metal and Quectel Wireless go up and down completely randomly.
Pair Corralation between CITIC Metal and Quectel Wireless
Assuming the 90 days trading horizon CITIC Metal Co is expected to under-perform the Quectel Wireless. But the stock apears to be less risky and, when comparing its historical volatility, CITIC Metal Co is 4.59 times less risky than Quectel Wireless. The stock trades about -0.19 of its potential returns per unit of risk. The Quectel Wireless Solutions is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 4,991 in Quectel Wireless Solutions on October 30, 2024 and sell it today you would earn a total of 3,975 from holding Quectel Wireless Solutions or generate 79.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Metal Co vs. Quectel Wireless Solutions
Performance |
| Timeline |
| CITIC Metal |
| Quectel Wireless Sol |
CITIC Metal and Quectel Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Metal and Quectel Wireless
The main advantage of trading using opposite CITIC Metal and Quectel Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Metal 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.| CITIC Metal vs. Zijin Mining Group | CITIC Metal vs. Wanhua Chemical Group | CITIC Metal vs. Baoshan Iron Steel | CITIC Metal vs. Shandong Gold Mining |
| Quectel Wireless vs. Bus Online Co | Quectel Wireless vs. Holitech Technology Co | Quectel Wireless vs. Gome Telecom Equipment | Quectel Wireless vs. Cultural Investment Holdings |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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