Correlation Between Quectel Wireless and Shenzhen Kexin
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By analyzing existing cross correlation between Quectel Wireless Solutions and Shenzhen Kexin Communication, you can compare the effects of market volatilities on Quectel Wireless and Shenzhen Kexin 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 Shenzhen Kexin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quectel Wireless and Shenzhen Kexin.
Diversification Opportunities for Quectel Wireless and Shenzhen Kexin
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Quectel and Shenzhen is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Quectel Wireless Solutions and Shenzhen Kexin Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Kexin Commu 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 Shenzhen Kexin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Kexin Commu has no effect on the direction of Quectel Wireless i.e., Quectel Wireless and Shenzhen Kexin go up and down completely randomly.
Pair Corralation between Quectel Wireless and Shenzhen Kexin
Assuming the 90 days trading horizon Quectel Wireless Solutions is expected to generate 0.85 times more return on investment than Shenzhen Kexin. However, Quectel Wireless Solutions is 1.18 times less risky than Shenzhen Kexin. It trades about 0.04 of its potential returns per unit of risk. Shenzhen Kexin Communication is currently generating about 0.01 per unit of risk. If you would invest 5,281 in Quectel Wireless Solutions on September 25, 2024 and sell it today you would earn a total of 1,209 from holding Quectel Wireless Solutions or generate 22.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Quectel Wireless Solutions vs. Shenzhen Kexin Communication
Performance |
Timeline |
Quectel Wireless Sol |
Shenzhen Kexin Commu |
Quectel Wireless and Shenzhen Kexin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Quectel Wireless and Shenzhen Kexin
The main advantage of trading using opposite Quectel Wireless and Shenzhen Kexin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quectel Wireless position performs unexpectedly, Shenzhen Kexin 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 Shenzhen Kexin will offset losses from the drop in Shenzhen Kexin's long position.Quectel Wireless vs. Industrial and Commercial | Quectel Wireless vs. Agricultural Bank of | Quectel Wireless vs. China Construction Bank | Quectel Wireless vs. Bank of China |
Shenzhen Kexin vs. Industrial and Commercial | Shenzhen Kexin vs. Agricultural Bank of | Shenzhen Kexin vs. China Construction Bank | Shenzhen Kexin vs. Bank of China |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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