Correlation Between Bank of Chengdu and Queclink Wireless
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By analyzing existing cross correlation between Bank of Chengdu and Queclink Wireless Solutions, you can compare the effects of market volatilities on Bank of Chengdu 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 Bank of Chengdu with a short position of Queclink Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Chengdu and Queclink Wireless.
Diversification Opportunities for Bank of Chengdu and Queclink Wireless
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bank and Queclink is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Chengdu and Queclink Wireless Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Queclink Wireless and Bank of Chengdu 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 Bank of Chengdu 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 Bank of Chengdu i.e., Bank of Chengdu and Queclink Wireless go up and down completely randomly.
Pair Corralation between Bank of Chengdu and Queclink Wireless
Assuming the 90 days trading horizon Bank of Chengdu is expected to generate 2.74 times less return on investment than Queclink Wireless. But when comparing it to its historical volatility, Bank of Chengdu is 2.55 times less risky than Queclink Wireless. It trades about 0.06 of its potential returns per unit of risk. Queclink Wireless Solutions is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,193 in Queclink Wireless Solutions on October 25, 2024 and sell it today you would earn a total of 275.00 from holding Queclink Wireless Solutions or generate 23.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Chengdu vs. Queclink Wireless Solutions
Performance |
| Timeline |
| Bank of Chengdu |
| Queclink Wireless |
Bank of Chengdu and Queclink Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Chengdu and Queclink Wireless
The main advantage of trading using opposite Bank of Chengdu and Queclink Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Chengdu 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.| Bank of Chengdu vs. Suzhou Mingzhi Technology | Bank of Chengdu vs. Jilin Jlu Communication | Bank of Chengdu vs. China Eastern Airlines | Bank of Chengdu vs. XiaMen HongXin Electron tech |
| Queclink Wireless vs. PKU HealthCare Corp | Queclink Wireless vs. Sanbo Hospital Management | Queclink Wireless vs. Shenzhen Zqgame | Queclink Wireless vs. Anhui Huaren Health |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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