Correlation Between Yunnan Jianzhijia and Qumei Furniture
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By analyzing existing cross correlation between Yunnan Jianzhijia Health Chain and Qumei Furniture Group, you can compare the effects of market volatilities on Yunnan Jianzhijia 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 Yunnan Jianzhijia with a short position of Qumei Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Jianzhijia and Qumei Furniture.
Diversification Opportunities for Yunnan Jianzhijia and Qumei Furniture
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yunnan and Qumei is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Jianzhijia Health Chain 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 Yunnan Jianzhijia 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 Yunnan Jianzhijia Health Chain 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 Yunnan Jianzhijia i.e., Yunnan Jianzhijia and Qumei Furniture go up and down completely randomly.
Pair Corralation between Yunnan Jianzhijia and Qumei Furniture
Assuming the 90 days trading horizon Yunnan Jianzhijia Health Chain is expected to under-perform the Qumei Furniture. But the stock apears to be less risky and, when comparing its historical volatility, Yunnan Jianzhijia Health Chain is 1.39 times less risky than Qumei Furniture. The stock trades about -0.11 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 24, 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 | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Yunnan Jianzhijia Health Chain vs. Qumei Furniture Group
Performance |
Timeline |
Yunnan Jianzhijia |
Qumei Furniture Group |
Yunnan Jianzhijia and Qumei Furniture Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Yunnan Jianzhijia and Qumei Furniture
The main advantage of trading using opposite Yunnan Jianzhijia and Qumei Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Jianzhijia 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.Yunnan Jianzhijia vs. Industrial and Commercial | Yunnan Jianzhijia vs. Kweichow Moutai Co | Yunnan Jianzhijia vs. Agricultural Bank of | Yunnan Jianzhijia vs. China Mobile Limited |
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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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