Correlation Between Qumei Furniture and Semiconductor Manufacturing
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By analyzing existing cross correlation between Qumei Furniture Group and Semiconductor Manufacturing Electronics, you can compare the effects of market volatilities on Qumei Furniture and Semiconductor Manufacturing 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 Semiconductor Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qumei Furniture and Semiconductor Manufacturing.
Diversification Opportunities for Qumei Furniture and Semiconductor Manufacturing
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qumei and Semiconductor is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Qumei Furniture Group and Semiconductor Manufacturing El in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semiconductor Manufacturing 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 Semiconductor Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semiconductor Manufacturing has no effect on the direction of Qumei Furniture i.e., Qumei Furniture and Semiconductor Manufacturing go up and down completely randomly.
Pair Corralation between Qumei Furniture and Semiconductor Manufacturing
Assuming the 90 days trading horizon Qumei Furniture is expected to generate 1.47 times less return on investment than Semiconductor Manufacturing. But when comparing it to its historical volatility, Qumei Furniture Group is 1.23 times less risky than Semiconductor Manufacturing. It trades about 0.21 of its potential returns per unit of risk. Semiconductor Manufacturing Electronics is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 475.00 in Semiconductor Manufacturing Electronics on September 5, 2024 and sell it today you would earn a total of 99.00 from holding Semiconductor Manufacturing Electronics or generate 20.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Qumei Furniture Group vs. Semiconductor Manufacturing El
Performance |
| Timeline |
| Qumei Furniture Group |
| Semiconductor Manufacturing |
Qumei Furniture and Semiconductor Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qumei Furniture and Semiconductor Manufacturing
The main advantage of trading using opposite Qumei Furniture and Semiconductor Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qumei Furniture position performs unexpectedly, Semiconductor Manufacturing 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 Semiconductor Manufacturing will offset losses from the drop in Semiconductor Manufacturing's long position.| Qumei Furniture vs. Ningbo Thermal Power | Qumei Furniture vs. Shenyang Huitian Thermal | Qumei Furniture vs. Minmetals Capital Co | Qumei Furniture vs. Beijing HuaYuanYiTong Thermal |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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