Correlation Between Oppein Home and Qumei Furniture
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By analyzing existing cross correlation between Oppein Home Group and Qumei Furniture Group, you can compare the effects of market volatilities on Oppein Home and Qumei Furniture 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 Oppein Home with a short position of Qumei Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppein Home and Qumei Furniture.
Diversification Opportunities for Oppein Home and Qumei Furniture
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Oppein and Qumei is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Oppein Home Group and Qumei Furniture Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qumei Furniture Group and Oppein Home 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 Oppein Home Group are associated (or correlated) with Qumei Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qumei Furniture Group has no effect on the direction of Oppein Home i.e., Oppein Home and Qumei Furniture go up and down completely randomly.
Pair Corralation between Oppein Home and Qumei Furniture
Assuming the 90 days trading horizon Oppein Home Group is expected to under-perform the Qumei Furniture. But the stock apears to be less risky and, when comparing its historical volatility, Oppein Home Group is 1.26 times less risky than Qumei Furniture. The stock trades about -0.09 of its potential returns per unit of risk. The Qumei Furniture Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. 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 |
Oppein Home Group vs. Qumei Furniture Group
Performance |
| Timeline |
| Oppein Home Group |
| Qumei Furniture Group |
Oppein Home and Qumei Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppein Home and Qumei Furniture
The main advantage of trading using opposite Oppein Home and Qumei Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppein Home position performs unexpectedly, Qumei Furniture 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 Qumei Furniture will offset losses from the drop in Qumei Furniture's long position.| Oppein Home vs. China Petroleum Chemical | Oppein Home vs. PetroChina Co Ltd | Oppein Home vs. China State Construction | Oppein Home vs. China Railway Group |
| Qumei Furniture vs. China Petroleum Chemical | Qumei Furniture vs. PetroChina Co Ltd | Qumei Furniture vs. China State Construction | Qumei Furniture vs. China Railway Group |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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