Correlation Between Hangzhou Arcvideo and Qumei Furniture
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By analyzing existing cross correlation between Hangzhou Arcvideo Technology and Qumei Furniture Group, you can compare the effects of market volatilities on Hangzhou Arcvideo 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 Hangzhou Arcvideo with a short position of Qumei Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Arcvideo and Qumei Furniture.
Diversification Opportunities for Hangzhou Arcvideo and Qumei Furniture
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hangzhou and Qumei is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Arcvideo Technology 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 Hangzhou Arcvideo 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 Hangzhou Arcvideo Technology 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 Hangzhou Arcvideo i.e., Hangzhou Arcvideo and Qumei Furniture go up and down completely randomly.
Pair Corralation between Hangzhou Arcvideo and Qumei Furniture
Assuming the 90 days trading horizon Hangzhou Arcvideo Technology is expected to generate 1.72 times more return on investment than Qumei Furniture. However, Hangzhou Arcvideo is 1.72 times more volatile than Qumei Furniture Group. It trades about 0.02 of its potential returns per unit of risk. Qumei Furniture Group is currently generating about -0.06 per unit of risk. If you would invest 3,263 in Hangzhou Arcvideo Technology on November 5, 2024 and sell it today you would lose (528.00) from holding Hangzhou Arcvideo Technology or give up 16.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Arcvideo Technology vs. Qumei Furniture Group
Performance |
| Timeline |
| Hangzhou Arcvideo |
| Qumei Furniture Group |
Hangzhou Arcvideo and Qumei Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Arcvideo and Qumei Furniture
The main advantage of trading using opposite Hangzhou Arcvideo and Qumei Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Arcvideo 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.| Hangzhou Arcvideo vs. Shenzhen Topway Video | Hangzhou Arcvideo vs. Jiugui Liquor Co | Hangzhou Arcvideo vs. Vats Liquor Chain | Hangzhou Arcvideo vs. Konfoong Materials International |
| Qumei Furniture vs. Agricultural Bank of | Qumei Furniture vs. Ningbo Tech Bank Co | Qumei Furniture vs. Ping An Insurance | Qumei Furniture vs. GRG Banking Equipment |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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