Correlation Between China Mobile and Qumei Furniture
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By analyzing existing cross correlation between China Mobile Limited and Qumei Furniture Group, you can compare the effects of market volatilities on China Mobile 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 China Mobile with a short position of Qumei Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Qumei Furniture.
Diversification Opportunities for China Mobile and Qumei Furniture
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Qumei is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited 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 China Mobile 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 China Mobile Limited 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 China Mobile i.e., China Mobile and Qumei Furniture go up and down completely randomly.
Pair Corralation between China Mobile and Qumei Furniture
Assuming the 90 days trading horizon China Mobile Limited is expected to under-perform the Qumei Furniture. But the stock apears to be less risky and, when comparing its historical volatility, China Mobile Limited is 2.26 times less risky than Qumei Furniture. The stock trades about -0.28 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Qumei Furniture Group
Performance |
| Timeline |
| China Mobile Limited |
| Qumei Furniture Group |
China Mobile and Qumei Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Qumei Furniture
The main advantage of trading using opposite China Mobile and Qumei Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile 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.| China Mobile vs. Sharetronic Data Technology | China Mobile vs. HUAQIN TECHNOLOGY LTD | China Mobile vs. Beijing Mainstreets Investment | China Mobile vs. Postal Savings Bank |
| 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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