Correlation Between Quectel Wireless and Dalian Thermal
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By analyzing existing cross correlation between Quectel Wireless Solutions and Dalian Thermal Power, you can compare the effects of market volatilities on Quectel Wireless and Dalian Thermal 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 Dalian Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quectel Wireless and Dalian Thermal.
Diversification Opportunities for Quectel Wireless and Dalian Thermal
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Quectel and Dalian is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Quectel Wireless Solutions and Dalian Thermal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalian Thermal 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 Dalian Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalian Thermal Power has no effect on the direction of Quectel Wireless i.e., Quectel Wireless and Dalian Thermal go up and down completely randomly.
Pair Corralation between Quectel Wireless and Dalian Thermal
Assuming the 90 days trading horizon Quectel Wireless Solutions is expected to generate 1.33 times more return on investment than Dalian Thermal. However, Quectel Wireless is 1.33 times more volatile than Dalian Thermal Power. It trades about 0.23 of its potential returns per unit of risk. Dalian Thermal Power is currently generating about -0.12 per unit of risk. If you would invest 5,229 in Quectel Wireless Solutions on November 6, 2024 and sell it today you would earn a total of 3,737 from holding Quectel Wireless Solutions or generate 71.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quectel Wireless Solutions vs. Dalian Thermal Power
Performance |
| Timeline |
| Quectel Wireless Sol |
| Dalian Thermal Power |
Quectel Wireless and Dalian Thermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quectel Wireless and Dalian Thermal
The main advantage of trading using opposite Quectel Wireless and Dalian Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quectel Wireless position performs unexpectedly, Dalian Thermal 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 Dalian Thermal will offset losses from the drop in Dalian Thermal's long position.| Quectel Wireless vs. Kangping Technology Co | Quectel Wireless vs. Jiujiang Shanshui Technology | Quectel Wireless vs. Chengdu Xingrong Investment | Quectel Wireless vs. Vanfund Urban Investment |
| Dalian Thermal vs. Shuhua Sports Co | Dalian Thermal vs. Hengdian Entertainment Co | Dalian Thermal vs. Quectel Wireless Solutions | Dalian Thermal vs. Guangzhou Jinyi Media |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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