Correlation Between Quectel Wireless and Gansu Jiu
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By analyzing existing cross correlation between Quectel Wireless Solutions and Gansu Jiu Steel, you can compare the effects of market volatilities on Quectel Wireless and Gansu Jiu 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 Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quectel Wireless and Gansu Jiu.
Diversification Opportunities for Quectel Wireless and Gansu Jiu
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Quectel and Gansu is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Quectel Wireless Solutions and Gansu Jiu Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Jiu Steel 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 Gansu Jiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Jiu Steel has no effect on the direction of Quectel Wireless i.e., Quectel Wireless and Gansu Jiu go up and down completely randomly.
Pair Corralation between Quectel Wireless and Gansu Jiu
Assuming the 90 days trading horizon Quectel Wireless is expected to generate 1.12 times less return on investment than Gansu Jiu. But when comparing it to its historical volatility, Quectel Wireless Solutions is 1.12 times less risky than Gansu Jiu. It trades about 0.2 of its potential returns per unit of risk. Gansu Jiu Steel is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 140.00 in Gansu Jiu Steel on September 13, 2024 and sell it today you would earn a total of 53.00 from holding Gansu Jiu Steel or generate 37.86% 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. Gansu Jiu Steel
Performance |
| Timeline |
| Quectel Wireless Sol |
| Gansu Jiu Steel |
Quectel Wireless and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quectel Wireless and Gansu Jiu
The main advantage of trading using opposite Quectel Wireless and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quectel Wireless position performs unexpectedly, Gansu Jiu 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 Gansu Jiu will offset losses from the drop in Gansu Jiu's long position.| Quectel Wireless vs. Industrial and Commercial | Quectel Wireless vs. China Construction Bank | Quectel Wireless vs. Bank of China | Quectel Wireless vs. Agricultural Bank of |
| Gansu Jiu vs. China Construction Bank | Gansu Jiu vs. Industrial Bank Co | Gansu Jiu vs. Gansu Huangtai Wine marketing | Gansu Jiu vs. Guosheng Financial Holding |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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