Correlation Between Qumei Furniture and China Asset
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By analyzing existing cross correlation between Qumei Furniture Group and China Asset Management, you can compare the effects of market volatilities on Qumei Furniture and China Asset 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 China Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qumei Furniture and China Asset.
Diversification Opportunities for Qumei Furniture and China Asset
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Qumei and China is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Qumei Furniture Group and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management 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 China Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of Qumei Furniture i.e., Qumei Furniture and China Asset go up and down completely randomly.
Pair Corralation between Qumei Furniture and China Asset
Assuming the 90 days trading horizon Qumei Furniture Group is expected to generate 3.66 times more return on investment than China Asset. However, Qumei Furniture is 3.66 times more volatile than China Asset Management. It trades about 0.09 of its potential returns per unit of risk. China Asset Management is currently generating about 0.12 per unit of risk. If you would invest 252.00 in Qumei Furniture Group on September 26, 2024 and sell it today you would earn a total of 46.00 from holding Qumei Furniture Group or generate 18.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Qumei Furniture Group vs. China Asset Management
Performance |
Timeline |
Qumei Furniture Group |
China Asset Management |
Qumei Furniture and China Asset Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Qumei Furniture and China Asset
The main advantage of trading using opposite Qumei Furniture and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qumei Furniture position performs unexpectedly, China Asset 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 China Asset will offset losses from the drop in China Asset's long position.Qumei Furniture vs. Olympic Circuit Technology | Qumei Furniture vs. HanS Laser Tech | Qumei Furniture vs. Wuhan Hvsen Biotechnology | Qumei Furniture vs. HUAQIN TECHNOLOGY LTD |
China Asset vs. Industrial and Commercial | China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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