Correlation Between Qumei Furniture and Astoria Quality
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By analyzing existing cross correlation between Qumei Furniture Group and Astoria Quality Kings, you can compare the effects of market volatilities on Qumei Furniture and Astoria Quality 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 Astoria Quality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qumei Furniture and Astoria Quality.
Diversification Opportunities for Qumei Furniture and Astoria Quality
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Qumei and Astoria is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Qumei Furniture Group and Astoria Quality Kings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astoria Quality Kings 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 Astoria Quality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astoria Quality Kings has no effect on the direction of Qumei Furniture i.e., Qumei Furniture and Astoria Quality go up and down completely randomly.
Pair Corralation between Qumei Furniture and Astoria Quality
Assuming the 90 days trading horizon Qumei Furniture Group is expected to generate 3.28 times more return on investment than Astoria Quality. However, Qumei Furniture is 3.28 times more volatile than Astoria Quality Kings. It trades about 0.14 of its potential returns per unit of risk. Astoria Quality Kings is currently generating about 0.2 per unit of risk. If you would invest 268.00 in Qumei Furniture Group on November 9, 2024 and sell it today you would earn a total of 15.00 from holding Qumei Furniture Group or generate 5.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.0% |
| Values | Daily Returns |
Qumei Furniture Group vs. Astoria Quality Kings
Performance |
| Timeline |
| Qumei Furniture Group |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Astoria Quality Kings |
Qumei Furniture and Astoria Quality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qumei Furniture and Astoria Quality
The main advantage of trading using opposite Qumei Furniture and Astoria Quality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qumei Furniture position performs unexpectedly, Astoria Quality 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 Astoria Quality will offset losses from the drop in Astoria Quality's long position.The idea behind Qumei Furniture Group and Astoria Quality Kings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Astoria Quality vs. Invesco Actively Managed | Astoria Quality vs. Harbor ETF Trust | Astoria Quality vs. iShares Trust | Astoria Quality vs. Xtrackers MSCI Emerging |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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