Correlation Between Jahen Household and Qumei Furniture
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By analyzing existing cross correlation between Jahen Household Products and Qumei Furniture Group, you can compare the effects of market volatilities on Jahen Household 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 Jahen Household with a short position of Qumei Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahen Household and Qumei Furniture.
Diversification Opportunities for Jahen Household and Qumei Furniture
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jahen and Qumei is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jahen Household Products 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 Jahen Household 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 Jahen Household Products 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 Jahen Household i.e., Jahen Household and Qumei Furniture go up and down completely randomly.
Pair Corralation between Jahen Household and Qumei Furniture
Assuming the 90 days trading horizon Jahen Household is expected to generate 1.23 times less return on investment than Qumei Furniture. But when comparing it to its historical volatility, Jahen Household Products is 1.59 times less risky than Qumei Furniture. It trades about 0.26 of its potential returns per unit of risk. Qumei Furniture Group is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 270.00 in Qumei Furniture Group on November 27, 2024 and sell it today you would earn a total of 26.00 from holding Qumei Furniture Group or generate 9.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jahen Household Products vs. Qumei Furniture Group
Performance |
| Timeline |
| Jahen Household Products |
| Qumei Furniture Group |
Jahen Household and Qumei Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahen Household and Qumei Furniture
The main advantage of trading using opposite Jahen Household and Qumei Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahen Household 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.| Jahen Household vs. Fiberhome Telecommunication Technologies | Jahen Household vs. Dongfeng Automobile Co | Jahen Household vs. Hengxin Mobile Business | Jahen Household vs. BTG Hotels Group |
| Qumei Furniture vs. Shuhua Sports Co | Qumei Furniture vs. Ningxia Xiaoming Agriculture | Qumei Furniture vs. Shenzhen Urban Transport | Qumei Furniture vs. Zhejiang Yinlun Machinery |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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