Correlation Between Quectel Wireless and Jiangsu Jinling
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By analyzing existing cross correlation between Quectel Wireless Solutions and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Quectel Wireless and Jiangsu Jinling 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 Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quectel Wireless and Jiangsu Jinling.
Diversification Opportunities for Quectel Wireless and Jiangsu Jinling
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Quectel and Jiangsu is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Quectel Wireless Solutions and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports 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 Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Quectel Wireless i.e., Quectel Wireless and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Quectel Wireless and Jiangsu Jinling
Assuming the 90 days trading horizon Quectel Wireless Solutions is expected to generate 1.11 times more return on investment than Jiangsu Jinling. However, Quectel Wireless is 1.11 times more volatile than Jiangsu Jinling Sports. It trades about 0.39 of its potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about -0.45 per unit of risk. If you would invest 5,656 in Quectel Wireless Solutions on October 18, 2024 and sell it today you would earn a total of 2,024 from holding Quectel Wireless Solutions or generate 35.79% 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. Jiangsu Jinling Sports
Performance |
| Timeline |
| Quectel Wireless Sol |
| Jiangsu Jinling Sports |
Quectel Wireless and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quectel Wireless and Jiangsu Jinling
The main advantage of trading using opposite Quectel Wireless and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quectel Wireless position performs unexpectedly, Jiangsu Jinling 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 Jiangsu Jinling will offset losses from the drop in Jiangsu Jinling'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 |
| Jiangsu Jinling vs. Hunan Mendale Hometextile | Jiangsu Jinling vs. Qumei Furniture Group | Jiangsu Jinling vs. Jiangxi Hengda Hi Tech | Jiangsu Jinling vs. DO Home Collection |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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