Correlation Between Qumei Furniture and COL Digital
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By analyzing existing cross correlation between Qumei Furniture Group and COL Digital Publishing, you can compare the effects of market volatilities on Qumei Furniture and COL Digital 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 COL Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qumei Furniture and COL Digital.
Diversification Opportunities for Qumei Furniture and COL Digital
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qumei and COL is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Qumei Furniture Group and COL Digital Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COL Digital Publishing 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 COL Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COL Digital Publishing has no effect on the direction of Qumei Furniture i.e., Qumei Furniture and COL Digital go up and down completely randomly.
Pair Corralation between Qumei Furniture and COL Digital
Assuming the 90 days trading horizon Qumei Furniture Group is expected to generate 1.0 times more return on investment than COL Digital. However, Qumei Furniture is 1.0 times more volatile than COL Digital Publishing. It trades about -0.11 of its potential returns per unit of risk. COL Digital Publishing is currently generating about -0.13 per unit of risk. If you would invest 313.00 in Qumei Furniture Group on October 28, 2024 and sell it today you would lose (51.00) from holding Qumei Furniture Group or give up 16.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qumei Furniture Group vs. COL Digital Publishing
Performance |
| Timeline |
| Qumei Furniture Group |
| COL Digital Publishing |
Qumei Furniture and COL Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qumei Furniture and COL Digital
The main advantage of trading using opposite Qumei Furniture and COL Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qumei Furniture position performs unexpectedly, COL Digital 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 COL Digital will offset losses from the drop in COL Digital's long position.| Qumei Furniture vs. Wuhan Yangtze Communication | Qumei Furniture vs. Lier Chemical Co | Qumei Furniture vs. Shenzhen Noposion Agrochemicals | Qumei Furniture vs. China Mobile Limited |
| COL Digital vs. CITIC Metal Co | COL Digital vs. China Aluminum International | COL Digital vs. Shanghai Yanpu Metal | COL Digital vs. Aluminum Corp of |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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