Correlation Between Qumei Furniture and Montage Technology
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By analyzing existing cross correlation between Qumei Furniture Group and Montage Technology Co, you can compare the effects of market volatilities on Qumei Furniture and Montage Technology 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 Montage Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qumei Furniture and Montage Technology.
Diversification Opportunities for Qumei Furniture and Montage Technology
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Qumei and Montage is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Qumei Furniture Group and Montage Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Montage 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 Montage Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Montage Technology has no effect on the direction of Qumei Furniture i.e., Qumei Furniture and Montage Technology go up and down completely randomly.
Pair Corralation between Qumei Furniture and Montage Technology
Assuming the 90 days trading horizon Qumei Furniture Group is expected to under-perform the Montage Technology. But the stock apears to be less risky and, when comparing its historical volatility, Qumei Furniture Group is 1.34 times less risky than Montage Technology. The stock trades about -0.4 of its potential returns per unit of risk. The Montage Technology Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 6,687 in Montage Technology Co on October 18, 2024 and sell it today you would lose (67.00) from holding Montage Technology Co or give up 1.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qumei Furniture Group vs. Montage Technology Co
Performance |
| Timeline |
| Qumei Furniture Group |
| Montage Technology |
Qumei Furniture and Montage Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qumei Furniture and Montage Technology
The main advantage of trading using opposite Qumei Furniture and Montage Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qumei Furniture position performs unexpectedly, Montage Technology 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 Montage Technology will offset losses from the drop in Montage Technology's long position.| Qumei Furniture vs. Tongyu Communication | Qumei Furniture vs. Guangdong Shenglu Telecommunication | Qumei Furniture vs. Nexchip Semiconductor Corp | Qumei Furniture vs. Lontium Semiconductor Corp |
| Montage Technology vs. Qumei Furniture Group | Montage Technology vs. Goodwill E Health | Montage Technology vs. Everjoy Health Group | Montage Technology vs. Shandong Sinoglory Health |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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