Correlation Between Qumei Furniture and Beijing Kaiwen
Specify exactly 2 symbols:
By analyzing existing cross correlation between Qumei Furniture Group and Beijing Kaiwen Education, you can compare the effects of market volatilities on Qumei Furniture and Beijing Kaiwen 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 Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qumei Furniture and Beijing Kaiwen.
Diversification Opportunities for Qumei Furniture and Beijing Kaiwen
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qumei and Beijing is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Qumei Furniture Group and Beijing Kaiwen Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Kaiwen Education 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 Beijing Kaiwen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Kaiwen Education has no effect on the direction of Qumei Furniture i.e., Qumei Furniture and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Qumei Furniture and Beijing Kaiwen
Assuming the 90 days trading horizon Qumei Furniture Group is expected to under-perform the Beijing Kaiwen. But the stock apears to be less risky and, when comparing its historical volatility, Qumei Furniture Group is 1.04 times less risky than Beijing Kaiwen. The stock trades about -0.03 of its potential returns per unit of risk. The Beijing Kaiwen Education is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 348.00 in Beijing Kaiwen Education on October 29, 2024 and sell it today you would earn a total of 102.00 from holding Beijing Kaiwen Education or generate 29.31% 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. Beijing Kaiwen Education
Performance |
| Timeline |
| Qumei Furniture Group |
| Beijing Kaiwen Education |
Qumei Furniture and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qumei Furniture and Beijing Kaiwen
The main advantage of trading using opposite Qumei Furniture and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qumei Furniture position performs unexpectedly, Beijing Kaiwen 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 Beijing Kaiwen will offset losses from the drop in Beijing Kaiwen's long position.| Qumei Furniture vs. Haima Automobile Group | Qumei Furniture vs. Zotye Automobile Co | Qumei Furniture vs. Anhui Jianghuai Automobile | Qumei Furniture vs. Quectel Wireless Solutions |
| Beijing Kaiwen vs. Jointo Energy Investment | Beijing Kaiwen vs. Dazhong Transportation Group | Beijing Kaiwen vs. Xiandai Investment Co | Beijing Kaiwen vs. Heilongjiang Transport Development |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |