Correlation Between Qumei Furniture and Spring Airlines
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By analyzing existing cross correlation between Qumei Furniture Group and Spring Airlines Co, you can compare the effects of market volatilities on Qumei Furniture and Spring Airlines 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 Spring Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qumei Furniture and Spring Airlines.
Diversification Opportunities for Qumei Furniture and Spring Airlines
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Qumei and Spring is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Qumei Furniture Group and Spring Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spring Airlines 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 Spring Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spring Airlines has no effect on the direction of Qumei Furniture i.e., Qumei Furniture and Spring Airlines go up and down completely randomly.
Pair Corralation between Qumei Furniture and Spring Airlines
Assuming the 90 days trading horizon Qumei Furniture Group is expected to under-perform the Spring Airlines. In addition to that, Qumei Furniture is 1.69 times more volatile than Spring Airlines Co. It trades about -0.05 of its total potential returns per unit of risk. Spring Airlines Co is currently generating about -0.02 per unit of volatility. If you would invest 6,477 in Spring Airlines Co on November 27, 2024 and sell it today you would lose (1,230) from holding Spring Airlines Co or give up 18.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qumei Furniture Group vs. Spring Airlines Co
Performance |
| Timeline |
| Qumei Furniture Group |
| Spring Airlines |
Qumei Furniture and Spring Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qumei Furniture and Spring Airlines
The main advantage of trading using opposite Qumei Furniture and Spring Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qumei Furniture position performs unexpectedly, Spring Airlines 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 Spring Airlines will offset losses from the drop in Spring Airlines' long position.| Qumei Furniture vs. Shuhua Sports Co | Qumei Furniture vs. Ningxia Xiaoming Agriculture | Qumei Furniture vs. Shenzhen Urban Transport | Qumei Furniture vs. Zhejiang Yinlun Machinery |
| Spring Airlines vs. Shengda Mining Co | Spring Airlines vs. Shaanxi Construction Machinery | Spring Airlines vs. Xingguang Agricultural Mach | Spring Airlines vs. Jinling Hotel Corp |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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