Correlation Between SSAW Hotels and Qumei Furniture
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By analyzing existing cross correlation between SSAW Hotels Resorts and Qumei Furniture Group, you can compare the effects of market volatilities on SSAW Hotels 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 SSAW Hotels with a short position of Qumei Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSAW Hotels and Qumei Furniture.
Diversification Opportunities for SSAW Hotels and Qumei Furniture
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SSAW and Qumei is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding SSAW Hotels Resorts 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 SSAW Hotels 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 SSAW Hotels Resorts 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 SSAW Hotels i.e., SSAW Hotels and Qumei Furniture go up and down completely randomly.
Pair Corralation between SSAW Hotels and Qumei Furniture
Assuming the 90 days trading horizon SSAW Hotels Resorts is expected to generate 1.31 times more return on investment than Qumei Furniture. However, SSAW Hotels is 1.31 times more volatile than Qumei Furniture Group. It trades about 0.05 of its potential returns per unit of risk. Qumei Furniture Group is currently generating about 0.03 per unit of risk. If you would invest 1,751 in SSAW Hotels Resorts on October 18, 2024 and sell it today you would earn a total of 257.00 from holding SSAW Hotels Resorts or generate 14.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSAW Hotels Resorts vs. Qumei Furniture Group
Performance |
| Timeline |
| SSAW Hotels Resorts |
| Qumei Furniture Group |
SSAW Hotels and Qumei Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSAW Hotels and Qumei Furniture
The main advantage of trading using opposite SSAW Hotels and Qumei Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSAW Hotels 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.| SSAW Hotels vs. Chongqing Brewery Co | SSAW Hotels vs. Shantui Construction Machinery | SSAW Hotels vs. Zhejiang Construction Investment | SSAW Hotels vs. Harbin Hatou Investment |
| Qumei Furniture vs. Huatian Hotel Group | Qumei Furniture vs. Yindu Kitchen Equipment | Qumei Furniture vs. SSAW Hotels Resorts | Qumei Furniture vs. Jinling Hotel Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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