Correlation Between Qumei Furniture and Gansu Huangtai
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By analyzing existing cross correlation between Qumei Furniture Group and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on Qumei Furniture and Gansu Huangtai 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 Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qumei Furniture and Gansu Huangtai.
Diversification Opportunities for Qumei Furniture and Gansu Huangtai
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qumei and Gansu is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Qumei Furniture Group and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine 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 Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of Qumei Furniture i.e., Qumei Furniture and Gansu Huangtai go up and down completely randomly.
Pair Corralation between Qumei Furniture and Gansu Huangtai
Assuming the 90 days trading horizon Qumei Furniture Group is expected to under-perform the Gansu Huangtai. But the stock apears to be less risky and, when comparing its historical volatility, Qumei Furniture Group is 1.1 times less risky than Gansu Huangtai. The stock trades about -0.02 of its potential returns per unit of risk. The Gansu Huangtai Wine marketing is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,630 in Gansu Huangtai Wine marketing on September 13, 2024 and sell it today you would earn a total of 87.00 from holding Gansu Huangtai Wine marketing or generate 5.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qumei Furniture Group vs. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| Qumei Furniture Group |
| Gansu Huangtai Wine |
Qumei Furniture and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qumei Furniture and Gansu Huangtai
The main advantage of trading using opposite Qumei Furniture and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qumei Furniture position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai's long position.| Qumei Furniture vs. Beijing Wandong Medical | Qumei Furniture vs. CareRay Digital Medical | Qumei Furniture vs. Leyard Optoelectronic | Qumei Furniture vs. YiDong Electronics Technology |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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