Correlation Between Luyin Investment and Qumei Furniture
Specify exactly 2 symbols:
By analyzing existing cross correlation between Luyin Investment Group and Qumei Furniture Group, you can compare the effects of market volatilities on Luyin Investment 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 Luyin Investment with a short position of Qumei Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Qumei Furniture.
Diversification Opportunities for Luyin Investment and Qumei Furniture
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Luyin and Qumei is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment 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 Luyin Investment 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 Luyin Investment 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 Luyin Investment i.e., Luyin Investment and Qumei Furniture go up and down completely randomly.
Pair Corralation between Luyin Investment and Qumei Furniture
Assuming the 90 days trading horizon Luyin Investment Group is expected to under-perform the Qumei Furniture. But the stock apears to be less risky and, when comparing its historical volatility, Luyin Investment Group is 2.05 times less risky than Qumei Furniture. The stock trades about -0.03 of its potential returns per unit of risk. The Qumei Furniture Group is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 308.00 in Qumei Furniture Group on September 25, 2024 and sell it today you would lose (4.00) from holding Qumei Furniture Group or give up 1.3% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Luyin Investment Group vs. Qumei Furniture Group
Performance |
Timeline |
Luyin Investment |
Qumei Furniture Group |
Luyin Investment and Qumei Furniture Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Luyin Investment and Qumei Furniture
The main advantage of trading using opposite Luyin Investment and Qumei Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment 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.Luyin Investment vs. Lutian Machinery Co | Luyin Investment vs. Senci Electric Machinery | Luyin Investment vs. Tjk Machinery Tianjin | Luyin Investment vs. Jiangxi Hengda Hi Tech |
Qumei Furniture vs. Mengtian Home Group | Qumei Furniture vs. AUPU Home Style | Qumei Furniture vs. Kangping Technology Co | Qumei Furniture vs. Vohringer Home Technology |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |