Correlation Between Qijing Machinery and Qumei Furniture
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By analyzing existing cross correlation between Qijing Machinery and Qumei Furniture Group, you can compare the effects of market volatilities on Qijing Machinery 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 Qijing Machinery with a short position of Qumei Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qijing Machinery and Qumei Furniture.
Diversification Opportunities for Qijing Machinery and Qumei Furniture
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qijing and Qumei is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Qijing Machinery 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 Qijing Machinery 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 Qijing Machinery 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 Qijing Machinery i.e., Qijing Machinery and Qumei Furniture go up and down completely randomly.
Pair Corralation between Qijing Machinery and Qumei Furniture
Assuming the 90 days trading horizon Qijing Machinery is expected to generate 0.83 times more return on investment than Qumei Furniture. However, Qijing Machinery is 1.2 times less risky than Qumei Furniture. It trades about -0.01 of its potential returns per unit of risk. Qumei Furniture Group is currently generating about -0.06 per unit of risk. If you would invest 1,446 in Qijing Machinery on October 14, 2024 and sell it today you would lose (212.00) from holding Qijing Machinery or give up 14.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qijing Machinery vs. Qumei Furniture Group
Performance |
| Timeline |
| Qijing Machinery |
| Qumei Furniture Group |
Qijing Machinery and Qumei Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qijing Machinery and Qumei Furniture
The main advantage of trading using opposite Qijing Machinery and Qumei Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qijing Machinery 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.| Qijing Machinery vs. Easyhome New Retail | Qijing Machinery vs. Hangzhou Gaoxin Rubber | Qijing Machinery vs. Advanced Technology Materials | Qijing Machinery vs. Runjian Communication Co |
| Qumei Furniture vs. Kingsignal Technology Co | Qumei Furniture vs. Kuangda Technology Group | Qumei Furniture vs. Mengtian Home Group | Qumei Furniture vs. Luolai Home Textile |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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