Correlation Between Quectel Wireless and Shanghai Laimu
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By analyzing existing cross correlation between Quectel Wireless Solutions and Shanghai Laimu Electronics, you can compare the effects of market volatilities on Quectel Wireless and Shanghai Laimu 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 Shanghai Laimu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quectel Wireless and Shanghai Laimu.
Diversification Opportunities for Quectel Wireless and Shanghai Laimu
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Quectel and Shanghai is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Quectel Wireless Solutions and Shanghai Laimu Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Laimu Elect 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 Shanghai Laimu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Laimu Elect has no effect on the direction of Quectel Wireless i.e., Quectel Wireless and Shanghai Laimu go up and down completely randomly.
Pair Corralation between Quectel Wireless and Shanghai Laimu
Assuming the 90 days trading horizon Quectel Wireless Solutions is expected to generate 1.19 times more return on investment than Shanghai Laimu. However, Quectel Wireless is 1.19 times more volatile than Shanghai Laimu Electronics. It trades about 0.32 of its potential returns per unit of risk. Shanghai Laimu Electronics is currently generating about 0.03 per unit of risk. If you would invest 6,868 in Quectel Wireless Solutions on November 3, 2024 and sell it today you would earn a total of 2,098 from holding Quectel Wireless Solutions or generate 30.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quectel Wireless Solutions vs. Shanghai Laimu Electronics
Performance |
| Timeline |
| Quectel Wireless Sol |
| Shanghai Laimu Elect |
Quectel Wireless and Shanghai Laimu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quectel Wireless and Shanghai Laimu
The main advantage of trading using opposite Quectel Wireless and Shanghai Laimu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quectel Wireless position performs unexpectedly, Shanghai Laimu 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 Shanghai Laimu will offset losses from the drop in Shanghai Laimu's long position.| Quectel Wireless vs. Jiangsu Xinri E Vehicle | Quectel Wireless vs. Bangyan Technology Co | Quectel Wireless vs. Chongqing Brewery Co | Quectel Wireless vs. Tsingtao Brewery Co |
| Shanghai Laimu vs. Hefei Metalforming Mach | Shanghai Laimu vs. Ye Chiu Metal | Shanghai Laimu vs. Jiajia Food Group | Shanghai Laimu vs. Shandong Hongchuang Aluminum |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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