Correlation Between Qumei Furniture and Vohringer Home
Specify exactly 2 symbols:
By analyzing existing cross correlation between Qumei Furniture Group and Vohringer Home Technology, you can compare the effects of market volatilities on Qumei Furniture and Vohringer Home 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 Vohringer Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qumei Furniture and Vohringer Home.
Diversification Opportunities for Qumei Furniture and Vohringer Home
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qumei and Vohringer is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Qumei Furniture Group and Vohringer Home Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vohringer Home Technology 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 Vohringer Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vohringer Home Technology has no effect on the direction of Qumei Furniture i.e., Qumei Furniture and Vohringer Home go up and down completely randomly.
Pair Corralation between Qumei Furniture and Vohringer Home
Assuming the 90 days trading horizon Qumei Furniture Group is expected to under-perform the Vohringer Home. In addition to that, Qumei Furniture is 1.0 times more volatile than Vohringer Home Technology. It trades about -0.04 of its total potential returns per unit of risk. Vohringer Home Technology is currently generating about 0.0 per unit of volatility. If you would invest 568.00 in Vohringer Home Technology on October 18, 2024 and sell it today you would lose (67.00) from holding Vohringer Home Technology or give up 11.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Qumei Furniture Group vs. Vohringer Home Technology
Performance |
| Timeline |
| Qumei Furniture Group |
| Vohringer Home Technology |
Qumei Furniture and Vohringer Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qumei Furniture and Vohringer Home
The main advantage of trading using opposite Qumei Furniture and Vohringer Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qumei Furniture position performs unexpectedly, Vohringer Home 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 Vohringer Home will offset losses from the drop in Vohringer Home'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 |
| Vohringer Home vs. Xiamen Jihong Package | Vohringer Home vs. Guangdong Wens Foodstuff | Vohringer Home vs. Youyou Foods Co | Vohringer Home vs. Anji Foodstuff Co |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |