Correlation Between Qumei Furniture and Shenzhen Mindray
Specify exactly 2 symbols:
By analyzing existing cross correlation between Qumei Furniture Group and Shenzhen Mindray Bio Medical, you can compare the effects of market volatilities on Qumei Furniture and Shenzhen Mindray 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 Shenzhen Mindray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qumei Furniture and Shenzhen Mindray.
Diversification Opportunities for Qumei Furniture and Shenzhen Mindray
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Qumei and Shenzhen is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Qumei Furniture Group and Shenzhen Mindray Bio Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Mindray Bio 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 Shenzhen Mindray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Mindray Bio has no effect on the direction of Qumei Furniture i.e., Qumei Furniture and Shenzhen Mindray go up and down completely randomly.
Pair Corralation between Qumei Furniture and Shenzhen Mindray
Assuming the 90 days trading horizon Qumei Furniture Group is expected to generate 1.98 times more return on investment than Shenzhen Mindray. However, Qumei Furniture is 1.98 times more volatile than Shenzhen Mindray Bio Medical. It trades about -0.17 of its potential returns per unit of risk. Shenzhen Mindray Bio Medical is currently generating about -0.35 per unit of risk. If you would invest 290.00 in Qumei Furniture Group on October 28, 2024 and sell it today you would lose (28.00) from holding Qumei Furniture Group or give up 9.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qumei Furniture Group vs. Shenzhen Mindray Bio Medical
Performance |
| Timeline |
| Qumei Furniture Group |
| Shenzhen Mindray Bio |
Qumei Furniture and Shenzhen Mindray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qumei Furniture and Shenzhen Mindray
The main advantage of trading using opposite Qumei Furniture and Shenzhen Mindray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qumei Furniture position performs unexpectedly, Shenzhen Mindray 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 Shenzhen Mindray will offset losses from the drop in Shenzhen Mindray'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 |
| Shenzhen Mindray vs. Shaanxi Construction Machinery | Shenzhen Mindray vs. Zhejiang Yinlun Machinery | Shenzhen Mindray vs. Shanghai Construction Group | Shenzhen Mindray vs. Dazhong Transportation 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |