Correlation Between Quectel Wireless and Xiandai Investment
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By analyzing existing cross correlation between Quectel Wireless Solutions and Xiandai Investment Co, you can compare the effects of market volatilities on Quectel Wireless and Xiandai Investment 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 Xiandai Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quectel Wireless and Xiandai Investment.
Diversification Opportunities for Quectel Wireless and Xiandai Investment
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Quectel and Xiandai is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Quectel Wireless Solutions and Xiandai Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiandai Investment 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 Xiandai Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiandai Investment has no effect on the direction of Quectel Wireless i.e., Quectel Wireless and Xiandai Investment go up and down completely randomly.
Pair Corralation between Quectel Wireless and Xiandai Investment
Assuming the 90 days trading horizon Quectel Wireless Solutions is expected to generate 4.14 times more return on investment than Xiandai Investment. However, Quectel Wireless is 4.14 times more volatile than Xiandai Investment Co. It trades about 0.32 of its potential returns per unit of risk. Xiandai Investment Co is currently generating about -0.07 per unit of risk. If you would invest 6,868 in Quectel Wireless Solutions on November 3, 2024 and sell it today you would earn a total of 2,098 from holding Quectel Wireless Solutions or generate 30.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quectel Wireless Solutions vs. Xiandai Investment Co
Performance |
| Timeline |
| Quectel Wireless Sol |
| Xiandai Investment |
Quectel Wireless and Xiandai Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quectel Wireless and Xiandai Investment
The main advantage of trading using opposite Quectel Wireless and Xiandai Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quectel Wireless position performs unexpectedly, Xiandai Investment 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 Xiandai Investment will offset losses from the drop in Xiandai Investment's long position.| Quectel Wireless vs. Industrial and Commercial | Quectel Wireless vs. Kweichow Moutai Co | Quectel Wireless vs. Agricultural Bank of | Quectel Wireless vs. China Mobile Limited |
| Xiandai Investment vs. Vohringer Home Technology | Xiandai Investment vs. Easyhome New Retail | Xiandai Investment vs. Hunan Mendale Hometextile | Xiandai Investment vs. Glodon Software Co |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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