Correlation Between Shanghai Metersbonwe and Qumei Furniture
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Metersbonwe FashionAccessories and Qumei Furniture Group, you can compare the effects of market volatilities on Shanghai Metersbonwe 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 Shanghai Metersbonwe with a short position of Qumei Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Metersbonwe and Qumei Furniture.
Diversification Opportunities for Shanghai Metersbonwe and Qumei Furniture
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Qumei is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Metersbonwe FashionAc 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 Shanghai Metersbonwe 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 Shanghai Metersbonwe FashionAccessories 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 Shanghai Metersbonwe i.e., Shanghai Metersbonwe and Qumei Furniture go up and down completely randomly.
Pair Corralation between Shanghai Metersbonwe and Qumei Furniture
Assuming the 90 days trading horizon Shanghai Metersbonwe FashionAccessories is expected to generate 1.64 times more return on investment than Qumei Furniture. However, Shanghai Metersbonwe is 1.64 times more volatile than Qumei Furniture Group. It trades about 0.28 of its potential returns per unit of risk. Qumei Furniture Group is currently generating about 0.21 per unit of risk. If you would invest 186.00 in Shanghai Metersbonwe FashionAccessories on September 5, 2024 and sell it today you would earn a total of 58.00 from holding Shanghai Metersbonwe FashionAccessories or generate 31.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shanghai Metersbonwe FashionAc vs. Qumei Furniture Group
Performance |
| Timeline |
| Shanghai Metersbonwe |
| Qumei Furniture Group |
Shanghai Metersbonwe and Qumei Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Metersbonwe and Qumei Furniture
The main advantage of trading using opposite Shanghai Metersbonwe and Qumei Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Metersbonwe 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.| Shanghai Metersbonwe vs. Shaanxi Beiyuan Chemical | Shanghai Metersbonwe vs. Yangmei Chemical Co | Shanghai Metersbonwe vs. Xiangyu Medical Co | Shanghai Metersbonwe vs. Guangzhou Jointas Chemical |
| Qumei Furniture vs. Ningbo Thermal Power | Qumei Furniture vs. Shenyang Huitian Thermal | Qumei Furniture vs. Minmetals Capital Co | Qumei Furniture vs. Beijing HuaYuanYiTong Thermal |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |