Correlation Between Shenzhen Noposion and Qumei Furniture
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Qumei Furniture Group, you can compare the effects of market volatilities on Shenzhen Noposion and Qumei Furniture 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 Shenzhen Noposion with a short position of Qumei Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Qumei Furniture.
Diversification Opportunities for Shenzhen Noposion and Qumei Furniture
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shenzhen and Qumei is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and Qumei Furniture Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qumei Furniture Group and Shenzhen Noposion 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 Shenzhen Noposion Agrochemicals are associated (or correlated) with Qumei Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qumei Furniture Group has no effect on the direction of Shenzhen Noposion i.e., Shenzhen Noposion and Qumei Furniture go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Qumei Furniture
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to under-perform the Qumei Furniture. In addition to that, Shenzhen Noposion is 1.3 times more volatile than Qumei Furniture Group. It trades about -0.17 of its total potential returns per unit of risk. Qumei Furniture Group is currently generating about -0.11 per unit of volatility. If you would invest 279.00 in Qumei Furniture Group on October 29, 2024 and sell it today you would lose (17.00) from holding Qumei Furniture Group or give up 6.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Qumei Furniture Group
Performance |
| Timeline |
| Shenzhen Noposion |
| Qumei Furniture Group |
Shenzhen Noposion and Qumei Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Qumei Furniture
The main advantage of trading using opposite Shenzhen Noposion and Qumei Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion position performs unexpectedly, Qumei Furniture 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 Qumei Furniture will offset losses from the drop in Qumei Furniture's long position.| Shenzhen Noposion vs. JCHX Mining Management | Shenzhen Noposion vs. Xinjiang Baodi Mining | Shenzhen Noposion vs. Kingsignal Technology Co | Shenzhen Noposion vs. Chenzhou Jingui Silver |
| Qumei Furniture vs. Haima Automobile Group | Qumei Furniture vs. Zotye Automobile Co | Qumei Furniture vs. Anhui Jianghuai Automobile | Qumei Furniture vs. Quectel Wireless Solutions |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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