Correlation Between Queclink Wireless and Jiangsu Seagull

Can any of the company-specific risk be diversified away by investing in both Queclink Wireless and Jiangsu Seagull 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 Queclink Wireless and Jiangsu Seagull into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Queclink Wireless and Jiangsu Seagull

0.21

Correlation Coefficient

Queclink Wireless  Jiangsu Seagull

Modest diversification

The 3 months correlation between Queclink and Jiangsu is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Queclink Wireless Solutions and Jiangsu Seagull Cooling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Seagull Cooling and Queclink 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 Queclink Wireless Solutions are associated (or correlated) with Jiangsu Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Seagull Cooling has no effect on the direction of Queclink Wireless i.e., Queclink Wireless and Jiangsu Seagull go up and down completely randomly.

Pair Corralation between Queclink Wireless and Jiangsu Seagull

Assuming the 90 days trading horizon Queclink Wireless is expected to generate 1.09 times less return on investment than Jiangsu Seagull. In addition to that, Queclink Wireless is 1.36 times more volatile than Jiangsu Seagull Cooling. It trades about 0.04 of its total potential returns per unit of risk. Jiangsu Seagull Cooling is currently generating about 0.06 per unit of volatility. If you would invest  887.00  in Jiangsu Seagull Cooling on October 7, 2024 and sell it today you would earn a total of  167.00  from holding Jiangsu Seagull Cooling or generate 18.83% return on investment over 90 days.

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

Queclink Wireless Solutions  vs.  Jiangsu Seagull Cooling

Queclink Wireless

Risk-Adjusted Performance

0 of 100

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 weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Jiangsu Seagull Cooling

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Jiangsu Seagull Cooling are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Jiangsu Seagull sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Queclink Wireless and Jiangsu Seagull

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

The idea behind Queclink Wireless Solutions and Jiangsu Seagull Cooling 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 CEOs Directory module to screen CEOs from public companies around the world.