Correlation Between Linewell Software and Qumei Furniture
Specify exactly 2 symbols:
By analyzing existing cross correlation between Linewell Software Co and Qumei Furniture Group, you can compare the effects of market volatilities on Linewell Software 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 Linewell Software with a short position of Qumei Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linewell Software and Qumei Furniture.
Diversification Opportunities for Linewell Software and Qumei Furniture
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Linewell and Qumei is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Linewell Software 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 Linewell Software 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 Linewell Software 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 Linewell Software i.e., Linewell Software and Qumei Furniture go up and down completely randomly.
Pair Corralation between Linewell Software and Qumei Furniture
Assuming the 90 days trading horizon Linewell Software Co is expected to under-perform the Qumei Furniture. But the stock apears to be less risky and, when comparing its historical volatility, Linewell Software Co is 1.69 times less risky than Qumei Furniture. The stock trades about -0.21 of its potential returns per unit of risk. The Qumei Furniture Group is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 313.00 in Qumei Furniture Group on September 28, 2024 and sell it today you would lose (29.00) from holding Qumei Furniture Group or give up 9.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Linewell Software Co vs. Qumei Furniture Group
Performance |
| Timeline |
| Linewell Software |
| Qumei Furniture Group |
Linewell Software and Qumei Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Linewell Software and Qumei Furniture
The main advantage of trading using opposite Linewell Software and Qumei Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linewell Software 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.| Linewell Software vs. Industrial and Commercial | Linewell Software vs. Agricultural Bank of | Linewell Software vs. China Construction Bank | Linewell Software vs. Bank of China |
| Qumei Furniture vs. Agricultural Bank of | Qumei Furniture vs. Industrial and Commercial | Qumei Furniture vs. Bank of China | Qumei Furniture vs. China Construction Bank |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |