Correlation Between Qumei Furniture and Jadard Technology
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By analyzing existing cross correlation between Qumei Furniture Group and Jadard Technology A, you can compare the effects of market volatilities on Qumei Furniture and Jadard 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 Jadard Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qumei Furniture and Jadard Technology.
Diversification Opportunities for Qumei Furniture and Jadard Technology
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qumei and Jadard is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Qumei Furniture Group and Jadard Technology A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jadard 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 Jadard Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jadard Technology has no effect on the direction of Qumei Furniture i.e., Qumei Furniture and Jadard Technology go up and down completely randomly.
Pair Corralation between Qumei Furniture and Jadard Technology
Assuming the 90 days trading horizon Qumei Furniture Group is expected to under-perform the Jadard Technology. But the stock apears to be less risky and, when comparing its historical volatility, Qumei Furniture Group is 1.3 times less risky than Jadard Technology. The stock trades about -0.03 of its potential returns per unit of risk. The Jadard Technology A is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,718 in Jadard Technology A on September 12, 2024 and sell it today you would earn a total of 626.00 from holding Jadard Technology A or generate 36.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qumei Furniture Group vs. Jadard Technology A
Performance |
| Timeline |
| Qumei Furniture Group |
| Jadard Technology |
Qumei Furniture and Jadard Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qumei Furniture and Jadard Technology
The main advantage of trading using opposite Qumei Furniture and Jadard Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qumei Furniture position performs unexpectedly, Jadard 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 Jadard Technology will offset losses from the drop in Jadard Technology's long position.| Qumei Furniture vs. Lutian Machinery Co | Qumei Furniture vs. PetroChina Co Ltd | Qumei Furniture vs. Bank of China | Qumei Furniture vs. Gansu Jiu Steel |
| Jadard Technology vs. Beijing Mainstreets Investment | Jadard Technology vs. Qumei Furniture Group | Jadard Technology vs. Suofeiya Home Collection | Jadard Technology vs. Shanghai Shuixing 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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