Correlation Between Quectel Wireless and Xilong Chemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Quectel Wireless Solutions and Xilong Chemical Co, you can compare the effects of market volatilities on Quectel Wireless and Xilong Chemical 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 Xilong Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quectel Wireless and Xilong Chemical.
Diversification Opportunities for Quectel Wireless and Xilong Chemical
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Quectel and Xilong is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Quectel Wireless Solutions and Xilong Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xilong Chemical 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 Xilong Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xilong Chemical has no effect on the direction of Quectel Wireless i.e., Quectel Wireless and Xilong Chemical go up and down completely randomly.
Pair Corralation between Quectel Wireless and Xilong Chemical
Assuming the 90 days trading horizon Quectel Wireless Solutions is expected to generate 2.61 times more return on investment than Xilong Chemical. However, Quectel Wireless is 2.61 times more volatile than Xilong Chemical Co. It trades about 0.44 of its potential returns per unit of risk. Xilong Chemical Co is currently generating about 0.2 per unit of risk. If you would invest 6,239 in Quectel Wireless Solutions on November 8, 2024 and sell it today you would earn a total of 2,356 from holding Quectel Wireless Solutions or generate 37.76% 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. Xilong Chemical Co
Performance |
| Timeline |
| Quectel Wireless Sol |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Xilong Chemical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Quectel Wireless and Xilong Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quectel Wireless and Xilong Chemical
The main advantage of trading using opposite Quectel Wireless and Xilong Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quectel Wireless position performs unexpectedly, Xilong Chemical 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 Xilong Chemical will offset losses from the drop in Xilong Chemical's long position.The idea behind Quectel Wireless Solutions and Xilong Chemical Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |