Correlation Between Qumei Furniture and Xiangpiaopiao Food
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By analyzing existing cross correlation between Qumei Furniture Group and Xiangpiaopiao Food Co, you can compare the effects of market volatilities on Qumei Furniture and Xiangpiaopiao Food 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 Xiangpiaopiao Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qumei Furniture and Xiangpiaopiao Food.
Diversification Opportunities for Qumei Furniture and Xiangpiaopiao Food
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Qumei and Xiangpiaopiao is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Qumei Furniture Group and Xiangpiaopiao Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangpiaopiao Food 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 Xiangpiaopiao Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangpiaopiao Food has no effect on the direction of Qumei Furniture i.e., Qumei Furniture and Xiangpiaopiao Food go up and down completely randomly.
Pair Corralation between Qumei Furniture and Xiangpiaopiao Food
Assuming the 90 days trading horizon Qumei Furniture Group is expected to under-perform the Xiangpiaopiao Food. In addition to that, Qumei Furniture is 1.01 times more volatile than Xiangpiaopiao Food Co. It trades about -0.04 of its total potential returns per unit of risk. Xiangpiaopiao Food Co is currently generating about 0.02 per unit of volatility. If you would invest 1,548 in Xiangpiaopiao Food Co on October 18, 2024 and sell it today you would earn a total of 47.00 from holding Xiangpiaopiao Food Co or generate 3.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Qumei Furniture Group vs. Xiangpiaopiao Food Co
Performance |
| Timeline |
| Qumei Furniture Group |
| Xiangpiaopiao Food |
Qumei Furniture and Xiangpiaopiao Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qumei Furniture and Xiangpiaopiao Food
The main advantage of trading using opposite Qumei Furniture and Xiangpiaopiao Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qumei Furniture position performs unexpectedly, Xiangpiaopiao Food 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 Xiangpiaopiao Food will offset losses from the drop in Xiangpiaopiao Food'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 |
| Xiangpiaopiao Food vs. Gan Yuan Foods | Xiangpiaopiao Food vs. Muyuan Foodstuff Co | Xiangpiaopiao Food vs. Chengdu Spaceon Electronics | Xiangpiaopiao Food vs. CSSC Offshore Marine |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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