Correlation Between GRIPM Advanced and Quectel Wireless
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By analyzing existing cross correlation between GRIPM Advanced Materials and Quectel Wireless Solutions, you can compare the effects of market volatilities on GRIPM Advanced and Quectel 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 GRIPM Advanced with a short position of Quectel Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIPM Advanced and Quectel Wireless.
Diversification Opportunities for GRIPM Advanced and Quectel Wireless
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GRIPM and Quectel is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding GRIPM Advanced Materials and Quectel Wireless Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quectel Wireless Sol and GRIPM Advanced 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 GRIPM Advanced Materials are associated (or correlated) with Quectel Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quectel Wireless Sol has no effect on the direction of GRIPM Advanced i.e., GRIPM Advanced and Quectel Wireless go up and down completely randomly.
Pair Corralation between GRIPM Advanced and Quectel Wireless
Assuming the 90 days trading horizon GRIPM Advanced Materials is expected to under-perform the Quectel Wireless. But the stock apears to be less risky and, when comparing its historical volatility, GRIPM Advanced Materials is 1.18 times less risky than Quectel Wireless. The stock trades about -0.03 of its potential returns per unit of risk. The Quectel Wireless Solutions is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 5,324 in Quectel Wireless Solutions on October 3, 2024 and sell it today you would earn a total of 1,520 from holding Quectel Wireless Solutions or generate 28.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
GRIPM Advanced Materials vs. Quectel Wireless Solutions
Performance |
Timeline |
GRIPM Advanced Materials |
Quectel Wireless Sol |
GRIPM Advanced and Quectel Wireless Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GRIPM Advanced and Quectel Wireless
The main advantage of trading using opposite GRIPM Advanced and Quectel Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIPM Advanced position performs unexpectedly, Quectel 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 Quectel Wireless will offset losses from the drop in Quectel Wireless' long position.GRIPM Advanced vs. Zijin Mining Group | GRIPM Advanced vs. Wanhua Chemical Group | GRIPM Advanced vs. Baoshan Iron Steel | GRIPM Advanced vs. Shandong Gold Mining |
Quectel Wireless vs. PKU HealthCare Corp | Quectel Wireless vs. CSSC Offshore Marine | Quectel Wireless vs. Anhui Xinhua Media | Quectel Wireless vs. De Rucci Healthy |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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