Correlation Between Qumei Furniture and Tibet Huayu
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By analyzing existing cross correlation between Qumei Furniture Group and Tibet Huayu Mining, you can compare the effects of market volatilities on Qumei Furniture and Tibet Huayu 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 Tibet Huayu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qumei Furniture and Tibet Huayu.
Diversification Opportunities for Qumei Furniture and Tibet Huayu
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qumei and Tibet is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Qumei Furniture Group and Tibet Huayu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tibet Huayu Mining 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 Tibet Huayu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tibet Huayu Mining has no effect on the direction of Qumei Furniture i.e., Qumei Furniture and Tibet Huayu go up and down completely randomly.
Pair Corralation between Qumei Furniture and Tibet Huayu
Assuming the 90 days trading horizon Qumei Furniture Group is expected to generate 0.98 times more return on investment than Tibet Huayu. However, Qumei Furniture Group is 1.02 times less risky than Tibet Huayu. It trades about 0.33 of its potential returns per unit of risk. Tibet Huayu Mining is currently generating about 0.09 per unit of risk. If you would invest 320.00 in Qumei Furniture Group on September 14, 2024 and sell it today you would earn a total of 72.00 from holding Qumei Furniture Group or generate 22.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qumei Furniture Group vs. Tibet Huayu Mining
Performance |
| Timeline |
| Qumei Furniture Group |
| Tibet Huayu Mining |
Qumei Furniture and Tibet Huayu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qumei Furniture and Tibet Huayu
The main advantage of trading using opposite Qumei Furniture and Tibet Huayu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qumei Furniture position performs unexpectedly, Tibet Huayu 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 Tibet Huayu will offset losses from the drop in Tibet Huayu's long position.| Qumei Furniture vs. Lutian Machinery Co | Qumei Furniture vs. China Longyuan Power | Qumei Furniture vs. PetroChina Co Ltd | Qumei Furniture vs. Bank of China |
| Tibet Huayu vs. Zijin Mining Group | Tibet Huayu vs. Wanhua Chemical Group | Tibet Huayu vs. Baoshan Iron Steel | Tibet Huayu vs. Shandong Gold Mining |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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