Correlation Between Qumei Furniture and Vanfund Urban
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By analyzing existing cross correlation between Qumei Furniture Group and Vanfund Urban Investment, you can compare the effects of market volatilities on Qumei Furniture and Vanfund Urban 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 Qumei Furniture with a short position of Vanfund Urban. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qumei Furniture and Vanfund Urban.
Diversification Opportunities for Qumei Furniture and Vanfund Urban
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qumei and Vanfund is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Qumei Furniture Group and Vanfund Urban Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanfund Urban Investment and Qumei Furniture 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 Qumei Furniture Group are associated (or correlated) with Vanfund Urban. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanfund Urban Investment has no effect on the direction of Qumei Furniture i.e., Qumei Furniture and Vanfund Urban go up and down completely randomly.
Pair Corralation between Qumei Furniture and Vanfund Urban
Assuming the 90 days trading horizon Qumei Furniture Group is expected to under-perform the Vanfund Urban. But the stock apears to be less risky and, when comparing its historical volatility, Qumei Furniture Group is 1.18 times less risky than Vanfund Urban. The stock trades about -0.67 of its potential returns per unit of risk. The Vanfund Urban Investment is currently generating about -0.48 of returns per unit of risk over similar time horizon. If you would invest 606.00 in Vanfund Urban Investment on October 15, 2024 and sell it today you would lose (175.00) from holding Vanfund Urban Investment or give up 28.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qumei Furniture Group vs. Vanfund Urban Investment
Performance |
| Timeline |
| Qumei Furniture Group |
| Vanfund Urban Investment |
Qumei Furniture and Vanfund Urban Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qumei Furniture and Vanfund Urban
The main advantage of trading using opposite Qumei Furniture and Vanfund Urban positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qumei Furniture position performs unexpectedly, Vanfund Urban 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 Vanfund Urban will offset losses from the drop in Vanfund Urban's long position.| Qumei Furniture vs. Cultural Investment Holdings | Qumei Furniture vs. Western Metal Materials | Qumei Furniture vs. Qingdao Choho Industrial | Qumei Furniture vs. Gem Year Industrial Co |
| Vanfund Urban vs. Anhui Jianghuai Automobile | Vanfund Urban vs. China Mobile Limited | Vanfund Urban vs. China Life Insurance | Vanfund Urban vs. Great Sun Foods Co |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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