Correlation Between Qumei Furniture and Soochow Securities
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By analyzing existing cross correlation between Qumei Furniture Group and Soochow Securities Co, you can compare the effects of market volatilities on Qumei Furniture and Soochow Securities 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 Soochow Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qumei Furniture and Soochow Securities.
Diversification Opportunities for Qumei Furniture and Soochow Securities
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qumei and Soochow is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Qumei Furniture Group and Soochow Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soochow Securities 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 Soochow Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soochow Securities has no effect on the direction of Qumei Furniture i.e., Qumei Furniture and Soochow Securities go up and down completely randomly.
Pair Corralation between Qumei Furniture and Soochow Securities
Assuming the 90 days trading horizon Qumei Furniture is expected to generate 67.36 times less return on investment than Soochow Securities. In addition to that, Qumei Furniture is 1.99 times more volatile than Soochow Securities Co. It trades about 0.0 of its total potential returns per unit of risk. Soochow Securities Co is currently generating about 0.11 per unit of volatility. If you would invest 776.00 in Soochow Securities Co on December 10, 2024 and sell it today you would earn a total of 23.00 from holding Soochow Securities Co or generate 2.96% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Qumei Furniture Group vs. Soochow Securities Co
Performance |
Timeline |
Qumei Furniture Group |
Soochow Securities |
Qumei Furniture and Soochow Securities Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Qumei Furniture and Soochow Securities
The main advantage of trading using opposite Qumei Furniture and Soochow Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qumei Furniture position performs unexpectedly, Soochow Securities 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 Soochow Securities will offset losses from the drop in Soochow Securities' long position.Qumei Furniture vs. Time Publishing and | Qumei Furniture vs. Guocheng Mining Co | Qumei Furniture vs. JCHX Mining Management | Qumei Furniture vs. COL Digital Publishing |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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