Correlation Between Spring Airlines and Qumei Furniture
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By analyzing existing cross correlation between Spring Airlines Co and Qumei Furniture Group, you can compare the effects of market volatilities on Spring Airlines 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 Spring Airlines with a short position of Qumei Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spring Airlines and Qumei Furniture.
Diversification Opportunities for Spring Airlines and Qumei Furniture
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Spring and Qumei is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Spring Airlines 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 Spring Airlines 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 Spring Airlines 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 Spring Airlines i.e., Spring Airlines and Qumei Furniture go up and down completely randomly.
Pair Corralation between Spring Airlines and Qumei Furniture
Assuming the 90 days trading horizon Spring Airlines Co is expected to under-perform the Qumei Furniture. But the stock apears to be less risky and, when comparing its historical volatility, Spring Airlines Co is 1.75 times less risky than Qumei Furniture. The stock trades about -0.09 of its potential returns per unit of risk. The 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spring Airlines Co vs. Qumei Furniture Group
Performance |
| Timeline |
| Spring Airlines |
| Qumei Furniture Group |
Spring Airlines and Qumei Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spring Airlines and Qumei Furniture
The main advantage of trading using opposite Spring Airlines and Qumei Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spring Airlines 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.| Spring Airlines vs. Shengda Mining Co | Spring Airlines vs. Shaanxi Construction Machinery | Spring Airlines vs. Xingguang Agricultural Mach | Spring Airlines vs. Jinling Hotel Corp |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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