Correlation Between Qumei Furniture and Shaanxi Meineng
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By analyzing existing cross correlation between Qumei Furniture Group and Shaanxi Meineng Clean, you can compare the effects of market volatilities on Qumei Furniture and Shaanxi Meineng 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 Shaanxi Meineng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qumei Furniture and Shaanxi Meineng.
Diversification Opportunities for Qumei Furniture and Shaanxi Meineng
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qumei and Shaanxi is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Qumei Furniture Group and Shaanxi Meineng Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Meineng Clean 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 Shaanxi Meineng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Meineng Clean has no effect on the direction of Qumei Furniture i.e., Qumei Furniture and Shaanxi Meineng go up and down completely randomly.
Pair Corralation between Qumei Furniture and Shaanxi Meineng
Assuming the 90 days trading horizon Qumei Furniture Group is expected to under-perform the Shaanxi Meineng. In addition to that, Qumei Furniture is 1.26 times more volatile than Shaanxi Meineng Clean. It trades about -0.39 of its total potential returns per unit of risk. Shaanxi Meineng Clean is currently generating about -0.1 per unit of volatility. If you would invest 1,309 in Shaanxi Meineng Clean on October 18, 2024 and sell it today you would lose (72.00) from holding Shaanxi Meineng Clean or give up 5.5% 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. Shaanxi Meineng Clean
Performance |
| Timeline |
| Qumei Furniture Group |
| Shaanxi Meineng Clean |
Qumei Furniture and Shaanxi Meineng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qumei Furniture and Shaanxi Meineng
The main advantage of trading using opposite Qumei Furniture and Shaanxi Meineng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qumei Furniture position performs unexpectedly, Shaanxi Meineng 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 Shaanxi Meineng will offset losses from the drop in Shaanxi Meineng's long position.| Qumei Furniture vs. Huatian Hotel Group | Qumei Furniture vs. Yindu Kitchen Equipment | Qumei Furniture vs. SSAW Hotels Resorts | Qumei Furniture vs. Jinling Hotel Corp |
| Shaanxi Meineng vs. Qumei Furniture Group | Shaanxi Meineng vs. Kidswant Children Products | Shaanxi Meineng vs. Bus Online Co | Shaanxi Meineng vs. Mengtian Home Group |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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