Correlation Between Hangzhou Pinming and Qumei Furniture
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hangzhou Pinming Software and Qumei Furniture Group, you can compare the effects of market volatilities on Hangzhou Pinming 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 Pinming with a short position of Qumei Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Pinming and Qumei Furniture.
Diversification Opportunities for Hangzhou Pinming and Qumei Furniture
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hangzhou and Qumei is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Pinming Software 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 Pinming 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 Pinming Software 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 Pinming i.e., Hangzhou Pinming and Qumei Furniture go up and down completely randomly.
Pair Corralation between Hangzhou Pinming and Qumei Furniture
Assuming the 90 days trading horizon Hangzhou Pinming Software is expected to generate 0.65 times more return on investment than Qumei Furniture. However, Hangzhou Pinming Software is 1.53 times less risky than Qumei Furniture. It trades about -0.12 of its potential returns per unit of risk. Qumei Furniture Group is currently generating about -0.1 per unit of risk. If you would invest 2,780 in Hangzhou Pinming Software on September 28, 2024 and sell it today you would lose (200.00) from holding Hangzhou Pinming Software or give up 7.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Pinming Software vs. Qumei Furniture Group
Performance |
| Timeline |
| Hangzhou Pinming Software |
| Qumei Furniture Group |
Hangzhou Pinming and Qumei Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Pinming and Qumei Furniture
The main advantage of trading using opposite Hangzhou Pinming and Qumei Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Pinming 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 Pinming vs. Industrial and Commercial | Hangzhou Pinming vs. Agricultural Bank of | Hangzhou Pinming vs. China Construction Bank | Hangzhou Pinming vs. Bank of China |
| Qumei Furniture vs. Agricultural Bank of | Qumei Furniture vs. Industrial and Commercial | Qumei Furniture vs. Bank of China | Qumei Furniture vs. China Construction Bank |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |