Correlation Between Quectel Wireless and Chengdu Xingrong
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By analyzing existing cross correlation between Quectel Wireless Solutions and Chengdu Xingrong Investment, you can compare the effects of market volatilities on Quectel Wireless and Chengdu Xingrong 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 Quectel Wireless with a short position of Chengdu Xingrong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quectel Wireless and Chengdu Xingrong.
Diversification Opportunities for Quectel Wireless and Chengdu Xingrong
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Quectel and Chengdu is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Quectel Wireless Solutions and Chengdu Xingrong Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xingrong Inv and Quectel Wireless 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 Quectel Wireless Solutions are associated (or correlated) with Chengdu Xingrong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xingrong Inv has no effect on the direction of Quectel Wireless i.e., Quectel Wireless and Chengdu Xingrong go up and down completely randomly.
Pair Corralation between Quectel Wireless and Chengdu Xingrong
Assuming the 90 days trading horizon Quectel Wireless Solutions is expected to generate 2.96 times more return on investment than Chengdu Xingrong. However, Quectel Wireless is 2.96 times more volatile than Chengdu Xingrong Investment. It trades about 0.17 of its potential returns per unit of risk. Chengdu Xingrong Investment is currently generating about -0.12 per unit of risk. If you would invest 5,733 in Quectel Wireless Solutions on September 14, 2024 and sell it today you would earn a total of 852.00 from holding Quectel Wireless Solutions or generate 14.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quectel Wireless Solutions vs. Chengdu Xingrong Investment
Performance |
| Timeline |
| Quectel Wireless Sol |
| Chengdu Xingrong Inv |
Quectel Wireless and Chengdu Xingrong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quectel Wireless and Chengdu Xingrong
The main advantage of trading using opposite Quectel Wireless and Chengdu Xingrong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quectel Wireless position performs unexpectedly, Chengdu Xingrong 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 Chengdu Xingrong will offset losses from the drop in Chengdu Xingrong's long position.| Quectel Wireless vs. Bengang Steel Plates | Quectel Wireless vs. Air China Ltd | Quectel Wireless vs. Hang Xiao Steel | Quectel Wireless vs. Guangzhou Restaurants Group |
| Chengdu Xingrong vs. Anhui Jianghuai Automobile | Chengdu Xingrong vs. Beijing Sanyuan Foods | Chengdu Xingrong vs. Qingdao Foods Co | Chengdu Xingrong vs. Quectel Wireless Solutions |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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