Correlation Between Ningbo Fujia and Qumei Furniture
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By analyzing existing cross correlation between Ningbo Fujia Industrial and Qumei Furniture Group, you can compare the effects of market volatilities on Ningbo Fujia 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 Ningbo Fujia with a short position of Qumei Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fujia and Qumei Furniture.
Diversification Opportunities for Ningbo Fujia and Qumei Furniture
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ningbo and Qumei is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fujia Industrial 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 Ningbo Fujia 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 Ningbo Fujia Industrial 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 Ningbo Fujia i.e., Ningbo Fujia and Qumei Furniture go up and down completely randomly.
Pair Corralation between Ningbo Fujia and Qumei Furniture
Assuming the 90 days trading horizon Ningbo Fujia Industrial is expected to generate 1.25 times more return on investment than Qumei Furniture. However, Ningbo Fujia is 1.25 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 -0.17 per unit of risk. If you would invest 1,466 in Ningbo Fujia Industrial on October 26, 2024 and sell it today you would earn a total of 31.00 from holding Ningbo Fujia Industrial or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Fujia Industrial vs. Qumei Furniture Group
Performance |
| Timeline |
| Ningbo Fujia Industrial |
| Qumei Furniture Group |
Ningbo Fujia and Qumei Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fujia and Qumei Furniture
The main advantage of trading using opposite Ningbo Fujia and Qumei Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fujia 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.| Ningbo Fujia vs. Cloud Live Technology | Ningbo Fujia vs. Nanjing Putian Telecommunications | Ningbo Fujia vs. Shenzhen Coship Electronics | Ningbo Fujia vs. Shenzhen Hifuture Electric |
| Qumei Furniture vs. Hangzhou Arcvideo Technology | Qumei Furniture vs. Do Fluoride Chemicals Co | Qumei Furniture vs. Shenzhen Topway Video | Qumei Furniture vs. Ningbo Fujia Industrial |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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