Correlation Between Qumei Furniture and Tsingtao Brewery
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By analyzing existing cross correlation between Qumei Furniture Group and Tsingtao Brewery Co, you can compare the effects of market volatilities on Qumei Furniture and Tsingtao Brewery 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 Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qumei Furniture and Tsingtao Brewery.
Diversification Opportunities for Qumei Furniture and Tsingtao Brewery
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Qumei and Tsingtao is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Qumei Furniture Group and Tsingtao Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery 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 Tsingtao Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tsingtao Brewery has no effect on the direction of Qumei Furniture i.e., Qumei Furniture and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between Qumei Furniture and Tsingtao Brewery
Assuming the 90 days trading horizon Qumei Furniture Group is expected to under-perform the Tsingtao Brewery. In addition to that, Qumei Furniture is 1.63 times more volatile than Tsingtao Brewery Co. It trades about -0.04 of its total potential returns per unit of risk. Tsingtao Brewery Co is currently generating about 0.03 per unit of volatility. If you would invest 6,931 in Tsingtao Brewery Co on October 18, 2024 and sell it today you would earn a total of 551.00 from holding Tsingtao Brewery Co or generate 7.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qumei Furniture Group vs. Tsingtao Brewery Co
Performance |
| Timeline |
| Qumei Furniture Group |
| Tsingtao Brewery |
Qumei Furniture and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qumei Furniture and Tsingtao Brewery
The main advantage of trading using opposite Qumei Furniture and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qumei Furniture position performs unexpectedly, Tsingtao Brewery 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 Tsingtao Brewery will offset losses from the drop in Tsingtao Brewery's long position.| Qumei Furniture vs. Huatian Hotel Group | Qumei Furniture vs. Yindu Kitchen Equipment | Qumei Furniture vs. SSAW Hotels Resorts | Qumei Furniture vs. Jinling Hotel Corp |
| Tsingtao Brewery vs. Vohringer Home Technology | Tsingtao Brewery vs. China Eastern Airlines | Tsingtao Brewery vs. CSSC Offshore Marine | Tsingtao Brewery vs. Fiberhome Telecommunication Technologies |
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