Correlation Between Qumei Furniture and Jiujiang Shanshui
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By analyzing existing cross correlation between Qumei Furniture Group and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on Qumei Furniture and Jiujiang Shanshui 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 Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qumei Furniture and Jiujiang Shanshui.
Diversification Opportunities for Qumei Furniture and Jiujiang Shanshui
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qumei and Jiujiang is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Qumei Furniture Group and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui 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 Jiujiang Shanshui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiujiang Shanshui has no effect on the direction of Qumei Furniture i.e., Qumei Furniture and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between Qumei Furniture and Jiujiang Shanshui
Assuming the 90 days trading horizon Qumei Furniture Group is expected to under-perform the Jiujiang Shanshui. In addition to that, Qumei Furniture is 1.29 times more volatile than Jiujiang Shanshui Technology. It trades about -0.04 of its total potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about 0.0 per unit of volatility. If you would invest 1,816 in Jiujiang Shanshui Technology on September 25, 2024 and sell it today you would lose (218.00) from holding Jiujiang Shanshui Technology or give up 12.0% 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. Jiujiang Shanshui Technology
Performance |
| Timeline |
| Qumei Furniture Group |
| Jiujiang Shanshui |
Qumei Furniture and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qumei Furniture and Jiujiang Shanshui
The main advantage of trading using opposite Qumei Furniture and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qumei Furniture position performs unexpectedly, Jiujiang Shanshui 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 Jiujiang Shanshui will offset losses from the drop in Jiujiang Shanshui's long position.| Qumei Furniture vs. Mengtian Home Group | Qumei Furniture vs. AUPU Home Style | Qumei Furniture vs. Kangping Technology Co | Qumei Furniture vs. Vohringer Home Technology |
| Jiujiang Shanshui vs. Hunan Mendale Hometextile | Jiujiang Shanshui vs. Nanjing OLO Home | Jiujiang Shanshui vs. Sichuan Hebang Biotechnology | Jiujiang Shanshui vs. Qumei Furniture 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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