Correlation Between Cultural Investment and Qumei Furniture
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By analyzing existing cross correlation between Cultural Investment Holdings and Qumei Furniture Group, you can compare the effects of market volatilities on Cultural Investment 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 Cultural Investment with a short position of Qumei Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Qumei Furniture.
Diversification Opportunities for Cultural Investment and Qumei Furniture
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cultural and Qumei is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings 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 Cultural Investment 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 Cultural Investment Holdings 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 Cultural Investment i.e., Cultural Investment and Qumei Furniture go up and down completely randomly.
Pair Corralation between Cultural Investment and Qumei Furniture
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to under-perform the Qumei Furniture. But the stock apears to be less risky and, when comparing its historical volatility, Cultural Investment Holdings is 1.47 times less risky than Qumei Furniture. The stock trades about -0.25 of its potential returns per unit of risk. The Qumei Furniture Group is currently generating about -0.11 of returns per unit of risk over similar time horizon. 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 | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Cultural Investment Holdings vs. Qumei Furniture Group
Performance |
| Timeline |
| Cultural Investment |
| Qumei Furniture Group |
Cultural Investment and Qumei Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Qumei Furniture
The main advantage of trading using opposite Cultural Investment and Qumei Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment 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.| Cultural Investment vs. Bomesc Offshore Engineering | Cultural Investment vs. Wuhan Yangtze Communication | Cultural Investment vs. Wasu Media Holding | Cultural Investment vs. Shanghai Jinfeng Wine |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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