Correlation Between Qumei Furniture and Jiangsu Jinling
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By analyzing existing cross correlation between Qumei Furniture Group and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Qumei Furniture and Jiangsu Jinling 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 Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qumei Furniture and Jiangsu Jinling.
Diversification Opportunities for Qumei Furniture and Jiangsu Jinling
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qumei and Jiangsu is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Qumei Furniture Group and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports 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 Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Qumei Furniture i.e., Qumei Furniture and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Qumei Furniture and Jiangsu Jinling
Assuming the 90 days trading horizon Qumei Furniture Group is expected to under-perform the Jiangsu Jinling. But the stock apears to be less risky and, when comparing its historical volatility, Qumei Furniture Group is 1.43 times less risky than Jiangsu Jinling. The stock trades about -0.46 of its potential returns per unit of risk. The Jiangsu Jinling Sports is currently generating about -0.22 of returns per unit of risk over similar time horizon. If you would invest 1,574 in Jiangsu Jinling Sports on October 17, 2024 and sell it today you would lose (337.00) from holding Jiangsu Jinling Sports or give up 21.41% 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. Jiangsu Jinling Sports
Performance |
| Timeline |
| Qumei Furniture Group |
| Jiangsu Jinling Sports |
Qumei Furniture and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qumei Furniture and Jiangsu Jinling
The main advantage of trading using opposite Qumei Furniture and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qumei Furniture position performs unexpectedly, Jiangsu Jinling 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 Jiangsu Jinling will offset losses from the drop in Jiangsu Jinling's long position.| Qumei Furniture vs. Tongyu Communication | Qumei Furniture vs. Guangdong Shenglu Telecommunication | Qumei Furniture vs. Nexchip Semiconductor Corp | Qumei Furniture vs. Lontium Semiconductor Corp |
| Jiangsu Jinling vs. Hunan Mendale Hometextile | Jiangsu Jinling vs. Qumei Furniture Group | Jiangsu Jinling vs. Jiangxi Hengda Hi Tech | Jiangsu Jinling vs. DO Home Collection |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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