Correlation Between Qumei Furniture and ROPEOK Technology
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By analyzing existing cross correlation between Qumei Furniture Group and ROPEOK Technology Group, you can compare the effects of market volatilities on Qumei Furniture and ROPEOK 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 ROPEOK Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qumei Furniture and ROPEOK Technology.
Diversification Opportunities for Qumei Furniture and ROPEOK Technology
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qumei and ROPEOK is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Qumei Furniture Group and ROPEOK Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ROPEOK 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 ROPEOK Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ROPEOK Technology has no effect on the direction of Qumei Furniture i.e., Qumei Furniture and ROPEOK Technology go up and down completely randomly.
Pair Corralation between Qumei Furniture and ROPEOK Technology
Assuming the 90 days trading horizon Qumei Furniture Group is expected to generate 1.15 times more return on investment than ROPEOK Technology. However, Qumei Furniture is 1.15 times more volatile than ROPEOK Technology Group. It trades about 0.06 of its potential returns per unit of risk. ROPEOK Technology Group is currently generating about 0.04 per unit of risk. If you would invest 297.00 in Qumei Furniture Group on August 28, 2024 and sell it today you would earn a total of 11.00 from holding Qumei Furniture Group or generate 3.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qumei Furniture Group vs. ROPEOK Technology Group
Performance |
| Timeline |
| Qumei Furniture Group |
| ROPEOK Technology |
Qumei Furniture and ROPEOK Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qumei Furniture and ROPEOK Technology
The main advantage of trading using opposite Qumei Furniture and ROPEOK Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qumei Furniture position performs unexpectedly, ROPEOK 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 ROPEOK Technology will offset losses from the drop in ROPEOK Technology'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 |
| ROPEOK Technology vs. Guangzhou Boji Medical | ROPEOK Technology vs. Allmed Medical Products | ROPEOK Technology vs. Nanjing Putian Telecommunications | ROPEOK Technology vs. Eastern Communications Co |
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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