Correlation Between Qumei Furniture and Xiamen Goldenhome
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By analyzing existing cross correlation between Qumei Furniture Group and Xiamen Goldenhome Co, you can compare the effects of market volatilities on Qumei Furniture and Xiamen Goldenhome 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 Xiamen Goldenhome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qumei Furniture and Xiamen Goldenhome.
Diversification Opportunities for Qumei Furniture and Xiamen Goldenhome
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qumei and Xiamen is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Qumei Furniture Group and Xiamen Goldenhome Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Goldenhome 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 Xiamen Goldenhome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Goldenhome has no effect on the direction of Qumei Furniture i.e., Qumei Furniture and Xiamen Goldenhome go up and down completely randomly.
Pair Corralation between Qumei Furniture and Xiamen Goldenhome
Assuming the 90 days trading horizon Qumei Furniture Group is expected to under-perform the Xiamen Goldenhome. In addition to that, Qumei Furniture is 1.29 times more volatile than Xiamen Goldenhome Co. It trades about -0.17 of its total potential returns per unit of risk. Xiamen Goldenhome Co is currently generating about -0.14 per unit of volatility. If you would invest 2,120 in Xiamen Goldenhome Co on October 26, 2024 and sell it today you would lose (133.00) from holding Xiamen Goldenhome Co or give up 6.27% 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. Xiamen Goldenhome Co
Performance |
| Timeline |
| Qumei Furniture Group |
| Xiamen Goldenhome |
Qumei Furniture and Xiamen Goldenhome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qumei Furniture and Xiamen Goldenhome
The main advantage of trading using opposite Qumei Furniture and Xiamen Goldenhome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qumei Furniture position performs unexpectedly, Xiamen Goldenhome 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 Xiamen Goldenhome will offset losses from the drop in Xiamen Goldenhome's long position.| Qumei Furniture vs. Hangzhou Arcvideo Technology | Qumei Furniture vs. Do Fluoride Chemicals Co | Qumei Furniture vs. Shenzhen Topway Video | Qumei Furniture vs. Ningbo Fujia Industrial |
| Xiamen Goldenhome vs. Ningbo Homelink Eco iTech | Xiamen Goldenhome vs. Everdisplay Optronics Shanghai | Xiamen Goldenhome vs. China Sports Industry | Xiamen Goldenhome 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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