Correlation Between Qumei Furniture and Linewell Software
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By analyzing existing cross correlation between Qumei Furniture Group and Linewell Software Co, you can compare the effects of market volatilities on Qumei Furniture and Linewell Software 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 Linewell Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qumei Furniture and Linewell Software.
Diversification Opportunities for Qumei Furniture and Linewell Software
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qumei and Linewell is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Qumei Furniture Group and Linewell Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linewell Software 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 Linewell Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linewell Software has no effect on the direction of Qumei Furniture i.e., Qumei Furniture and Linewell Software go up and down completely randomly.
Pair Corralation between Qumei Furniture and Linewell Software
Assuming the 90 days trading horizon Qumei Furniture Group is expected to under-perform the Linewell Software. But the stock apears to be less risky and, when comparing its historical volatility, Qumei Furniture Group is 1.02 times less risky than Linewell Software. The stock trades about -0.01 of its potential returns per unit of risk. The Linewell Software Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 865.00 in Linewell Software Co on August 26, 2024 and sell it today you would earn a total of 232.00 from holding Linewell Software Co or generate 26.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qumei Furniture Group vs. Linewell Software Co
Performance |
| Timeline |
| Qumei Furniture Group |
| Linewell Software |
Qumei Furniture and Linewell Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qumei Furniture and Linewell Software
The main advantage of trading using opposite Qumei Furniture and Linewell Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qumei Furniture position performs unexpectedly, Linewell Software 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 Linewell Software will offset losses from the drop in Linewell Software's long position.| Qumei Furniture vs. China Petroleum Chemical | Qumei Furniture vs. PetroChina Co Ltd | Qumei Furniture vs. China State Construction | Qumei Furniture vs. China Railway Group |
| Linewell Software vs. Kingsignal Technology Co | Linewell Software vs. Suofeiya Home Collection | Linewell Software vs. Qumei Furniture Group | Linewell Software vs. Nanjing OLO Home |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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