Correlation Between Qumei Furniture and UE Furniture
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By analyzing existing cross correlation between Qumei Furniture Group and UE Furniture Co, you can compare the effects of market volatilities on Qumei Furniture and UE Furniture 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 UE Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qumei Furniture and UE Furniture.
Diversification Opportunities for Qumei Furniture and UE Furniture
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Qumei and 603600 is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Qumei Furniture Group and UE Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UE Furniture 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 UE Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UE Furniture has no effect on the direction of Qumei Furniture i.e., Qumei Furniture and UE Furniture go up and down completely randomly.
Pair Corralation between Qumei Furniture and UE Furniture
Assuming the 90 days trading horizon Qumei Furniture Group is expected to under-perform the UE Furniture. But the stock apears to be less risky and, when comparing its historical volatility, Qumei Furniture Group is 1.22 times less risky than UE Furniture. The stock trades about -0.18 of its potential returns per unit of risk. The UE Furniture Co is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,148 in UE Furniture Co on October 23, 2024 and sell it today you would earn a total of 140.00 from holding UE Furniture Co or generate 12.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qumei Furniture Group vs. UE Furniture Co
Performance |
| Timeline |
| Qumei Furniture Group |
| UE Furniture |
Qumei Furniture and UE Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qumei Furniture and UE Furniture
The main advantage of trading using opposite Qumei Furniture and UE Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qumei Furniture position performs unexpectedly, UE Furniture 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 UE Furniture will offset losses from the drop in UE Furniture's long position.| Qumei Furniture vs. Techshine Electronics Co | Qumei Furniture vs. Guangdong Ellington Electronics | Qumei Furniture vs. Xinya Electronic Co | Qumei Furniture vs. Guangzhou Restaurants Group |
| UE Furniture vs. Agricultural Bank of | UE Furniture vs. Industrial and Commercial | UE Furniture vs. Bank of China | UE Furniture vs. China Construction Bank |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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