Correlation Between Qumei Furniture and Yunnan Jianzhijia
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By analyzing existing cross correlation between Qumei Furniture Group and Yunnan Jianzhijia Health Chain, you can compare the effects of market volatilities on Qumei Furniture and Yunnan Jianzhijia 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 Yunnan Jianzhijia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qumei Furniture and Yunnan Jianzhijia.
Diversification Opportunities for Qumei Furniture and Yunnan Jianzhijia
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qumei and Yunnan is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Qumei Furniture Group and Yunnan Jianzhijia Health Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Jianzhijia 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 Yunnan Jianzhijia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Jianzhijia has no effect on the direction of Qumei Furniture i.e., Qumei Furniture and Yunnan Jianzhijia go up and down completely randomly.
Pair Corralation between Qumei Furniture and Yunnan Jianzhijia
Assuming the 90 days trading horizon Qumei Furniture is expected to generate 20.36 times less return on investment than Yunnan Jianzhijia. But when comparing it to its historical volatility, Qumei Furniture Group is 1.1 times less risky than Yunnan Jianzhijia. It trades about 0.0 of its potential returns per unit of risk. Yunnan Jianzhijia Health Chain is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,260 in Yunnan Jianzhijia Health Chain on December 10, 2024 and sell it today you would earn a total of 1.00 from holding Yunnan Jianzhijia Health Chain or generate 0.04% 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. Yunnan Jianzhijia Health Chain
Performance |
Timeline |
Qumei Furniture Group |
Yunnan Jianzhijia |
Qumei Furniture and Yunnan Jianzhijia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Qumei Furniture and Yunnan Jianzhijia
The main advantage of trading using opposite Qumei Furniture and Yunnan Jianzhijia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qumei Furniture position performs unexpectedly, Yunnan Jianzhijia 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 Yunnan Jianzhijia will offset losses from the drop in Yunnan Jianzhijia's 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 |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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