Correlation Between Quectel Wireless and Guangdong Electric
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By analyzing existing cross correlation between Quectel Wireless Solutions and Guangdong Electric Power, you can compare the effects of market volatilities on Quectel Wireless and Guangdong Electric 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 Guangdong Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quectel Wireless and Guangdong Electric.
Diversification Opportunities for Quectel Wireless and Guangdong Electric
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Quectel and Guangdong is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Quectel Wireless Solutions and Guangdong Electric Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Electric Power 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 Guangdong Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Electric Power has no effect on the direction of Quectel Wireless i.e., Quectel Wireless and Guangdong Electric go up and down completely randomly.
Pair Corralation between Quectel Wireless and Guangdong Electric
Assuming the 90 days trading horizon Quectel Wireless Solutions is expected to generate 6.98 times more return on investment than Guangdong Electric. However, Quectel Wireless is 6.98 times more volatile than Guangdong Electric Power. It trades about 0.36 of its potential returns per unit of risk. Guangdong Electric Power is currently generating about -0.32 per unit of risk. If you would invest 5,720 in Quectel Wireless Solutions on October 17, 2024 and sell it today you would earn a total of 1,960 from holding Quectel Wireless Solutions or generate 34.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quectel Wireless Solutions vs. Guangdong Electric Power
Performance |
| Timeline |
| Quectel Wireless Sol |
| Guangdong Electric Power |
Quectel Wireless and Guangdong Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quectel Wireless and Guangdong Electric
The main advantage of trading using opposite Quectel Wireless and Guangdong Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quectel Wireless position performs unexpectedly, Guangdong Electric 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 Guangdong Electric will offset losses from the drop in Guangdong Electric's long position.| Quectel Wireless vs. Guangzhou Haige Communications | Quectel Wireless vs. Hainan Haiqi Transportation | Quectel Wireless vs. China Eastern Airlines | Quectel Wireless vs. Jilin Jlu Communication |
| Guangdong Electric vs. Quectel Wireless Solutions | Guangdong Electric vs. Iat Automobile Technology | Guangdong Electric vs. Dongfeng Automobile Co | Guangdong Electric 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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