Correlation Between Qumei Furniture and Holitech Technology
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By analyzing existing cross correlation between Qumei Furniture Group and Holitech Technology Co, you can compare the effects of market volatilities on Qumei Furniture and Holitech Technology 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 Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qumei Furniture and Holitech Technology.
Diversification Opportunities for Qumei Furniture and Holitech Technology
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qumei and Holitech is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Qumei Furniture Group and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology 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 Holitech Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holitech Technology has no effect on the direction of Qumei Furniture i.e., Qumei Furniture and Holitech Technology go up and down completely randomly.
Pair Corralation between Qumei Furniture and Holitech Technology
Assuming the 90 days trading horizon Qumei Furniture is expected to generate 2.07 times less return on investment than Holitech Technology. In addition to that, Qumei Furniture is 1.09 times more volatile than Holitech Technology Co. It trades about 0.07 of its total potential returns per unit of risk. Holitech Technology Co is currently generating about 0.16 per unit of volatility. If you would invest 134.00 in Holitech Technology Co on September 13, 2024 and sell it today you would earn a total of 98.00 from holding Holitech Technology Co or generate 73.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qumei Furniture Group vs. Holitech Technology Co
Performance |
| Timeline |
| Qumei Furniture Group |
| Holitech Technology |
Qumei Furniture and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qumei Furniture and Holitech Technology
The main advantage of trading using opposite Qumei Furniture and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qumei Furniture position performs unexpectedly, Holitech Technology 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 Holitech Technology will offset losses from the drop in Holitech Technology'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 |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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