Correlation Between Gem Year and Qumei Furniture
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By analyzing existing cross correlation between Gem Year Industrial Co and Qumei Furniture Group, you can compare the effects of market volatilities on Gem Year 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 Gem Year with a short position of Qumei Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and Qumei Furniture.
Diversification Opportunities for Gem Year and Qumei Furniture
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gem and Qumei is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co 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 Gem Year 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 Gem Year Industrial Co 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 Gem Year i.e., Gem Year and Qumei Furniture go up and down completely randomly.
Pair Corralation between Gem Year and Qumei Furniture
Assuming the 90 days trading horizon Gem Year Industrial Co is expected to generate 0.77 times more return on investment than Qumei Furniture. However, Gem Year Industrial Co is 1.3 times less risky than Qumei Furniture. It trades about 0.06 of its potential returns per unit of risk. Qumei Furniture Group is currently generating about -0.11 per unit of risk. If you would invest 441.00 in Gem Year Industrial Co on October 29, 2024 and sell it today you would earn a total of 8.00 from holding Gem Year Industrial Co or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. Qumei Furniture Group
Performance |
| Timeline |
| Gem Year Industrial |
| Qumei Furniture Group |
Gem Year and Qumei Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and Qumei Furniture
The main advantage of trading using opposite Gem Year and Qumei Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year 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.| Gem Year vs. Anhui Jianghuai Automobile | Gem Year vs. Iat Automobile Technology | Gem Year vs. Shenzhen Centralcon Investment | Gem Year vs. Hunan Investment Group |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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