Correlation Between Quectel Wireless and PetroChina
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By analyzing existing cross correlation between Quectel Wireless Solutions and PetroChina Co Ltd, you can compare the effects of market volatilities on Quectel Wireless and PetroChina 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 PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quectel Wireless and PetroChina.
Diversification Opportunities for Quectel Wireless and PetroChina
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Quectel and PetroChina is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Quectel Wireless Solutions and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina 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 PetroChina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PetroChina has no effect on the direction of Quectel Wireless i.e., Quectel Wireless and PetroChina go up and down completely randomly.
Pair Corralation between Quectel Wireless and PetroChina
Assuming the 90 days trading horizon Quectel Wireless is expected to generate 1.53 times less return on investment than PetroChina. In addition to that, Quectel Wireless is 1.95 times more volatile than PetroChina Co Ltd. It trades about 0.02 of its total potential returns per unit of risk. PetroChina Co Ltd is currently generating about 0.06 per unit of volatility. If you would invest 500.00 in PetroChina Co Ltd on November 8, 2024 and sell it today you would earn a total of 315.00 from holding PetroChina Co Ltd or generate 63.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quectel Wireless Solutions vs. PetroChina Co Ltd
Performance |
| Timeline |
| Quectel Wireless Sol |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| PetroChina |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Quectel Wireless and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quectel Wireless and PetroChina
The main advantage of trading using opposite Quectel Wireless and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quectel Wireless position performs unexpectedly, PetroChina 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 PetroChina will offset losses from the drop in PetroChina's long position.The idea behind Quectel Wireless Solutions and PetroChina Co Ltd 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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