Correlation Between Ningbo GQY and Queclink Wireless

Can any of the company-specific risk be diversified away by investing in both Ningbo GQY and Queclink Wireless at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ningbo GQY and Queclink Wireless into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ningbo GQY Video and Queclink Wireless Solutions, you can compare the effects of market volatilities on Ningbo GQY and Queclink Wireless 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 Ningbo GQY with a short position of Queclink Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo GQY and Queclink Wireless.

Diversification Opportunities for Ningbo GQY and Queclink Wireless

0.18

Correlation Coefficient

Ningbo GQY  Queclink Wireless

Average diversification

The 3 months correlation between Ningbo and Queclink is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo GQY Video and Queclink Wireless Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Queclink Wireless and Ningbo GQY 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 Ningbo GQY Video are associated (or correlated) with Queclink Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Queclink Wireless has no effect on the direction of Ningbo GQY i.e., Ningbo GQY and Queclink Wireless go up and down completely randomly.

Pair Corralation between Ningbo GQY and Queclink Wireless

Assuming the 90 days trading horizon Ningbo GQY Video is expected to generate 1.29 times more return on investment than Queclink Wireless. However, Ningbo GQY is 1.29 times more volatile than Queclink Wireless Solutions. It trades about 0.03 of its potential returns per unit of risk. Queclink Wireless Solutions is currently generating about -0.04 per unit of risk. If you would invest  753.00  in Ningbo GQY Video on December 30, 2024 and sell it today you would earn a total of  18.00  from holding Ningbo GQY Video or generate 2.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Ningbo GQY Video  vs.  Queclink Wireless Solutions

Ningbo GQY Video

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ningbo GQY Video are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Ningbo GQY may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Queclink Wireless

Risk-Adjusted Performance

Very Weak

Over the last 90 days Queclink Wireless Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Ningbo GQY and Queclink Wireless

The main advantage of trading using opposite Ningbo GQY and Queclink Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo GQY position performs unexpectedly, Queclink Wireless 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 Queclink Wireless will offset losses from the drop in Queclink Wireless' long position.

The idea behind Ningbo GQY Video and Queclink Wireless Solutions 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.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.