Correlation Between Shenzhen SDG and UE Furniture
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By analyzing existing cross correlation between Shenzhen SDG Information and UE Furniture Co, you can compare the effects of market volatilities on Shenzhen SDG and UE 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 Shenzhen SDG with a short position of UE Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and UE Furniture.
Diversification Opportunities for Shenzhen SDG and UE Furniture
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and 603600 is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information and UE Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UE Furniture and Shenzhen SDG 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 Shenzhen SDG Information are associated (or correlated) with UE Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UE Furniture has no effect on the direction of Shenzhen SDG i.e., Shenzhen SDG and UE Furniture go up and down completely randomly.
Pair Corralation between Shenzhen SDG and UE Furniture
Assuming the 90 days trading horizon Shenzhen SDG Information is expected to generate 1.06 times more return on investment than UE Furniture. However, Shenzhen SDG is 1.06 times more volatile than UE Furniture Co. It trades about 0.07 of its potential returns per unit of risk. UE Furniture Co is currently generating about 0.04 per unit of risk. If you would invest 480.00 in Shenzhen SDG Information on September 2, 2024 and sell it today you would earn a total of 106.00 from holding Shenzhen SDG Information or generate 22.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen SDG Information vs. UE Furniture Co
Performance |
| Timeline |
| Shenzhen SDG Information |
| UE Furniture |
Shenzhen SDG and UE Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and UE Furniture
The main advantage of trading using opposite Shenzhen SDG and UE Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG position performs unexpectedly, UE 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 UE Furniture will offset losses from the drop in UE Furniture's long position.| Shenzhen SDG vs. Industrial and Commercial | Shenzhen SDG vs. Kweichow Moutai Co | Shenzhen SDG vs. Agricultural Bank of | Shenzhen SDG vs. China Mobile Limited |
| UE Furniture vs. Agricultural Bank of | UE Furniture vs. Industrial and Commercial | UE Furniture vs. Bank of China | UE Furniture vs. PetroChina Co Ltd |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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