Correlation Between Digital China and UE Furniture
Specify exactly 2 symbols:
By analyzing existing cross correlation between Digital China Information and UE Furniture Co, you can compare the effects of market volatilities on Digital China 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 Digital China with a short position of UE Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital China and UE Furniture.
Diversification Opportunities for Digital China and UE Furniture
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Digital and 603600 is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Digital China 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 Digital China 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 Digital China 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 Digital China i.e., Digital China and UE Furniture go up and down completely randomly.
Pair Corralation between Digital China and UE Furniture
Assuming the 90 days trading horizon Digital China Information is expected to generate 2.19 times more return on investment than UE Furniture. However, Digital China is 2.19 times more volatile than UE Furniture Co. It trades about -0.02 of its potential returns per unit of risk. UE Furniture Co is currently generating about -0.23 per unit of risk. If you would invest 1,248 in Digital China Information on August 31, 2024 and sell it today you would lose (43.00) from holding Digital China Information or give up 3.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digital China Information vs. UE Furniture Co
Performance |
| Timeline |
| Digital China Information |
| UE Furniture |
Digital China and UE Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digital China and UE Furniture
The main advantage of trading using opposite Digital China and UE Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital China 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.| Digital China vs. Kweichow Moutai Co | Digital China vs. NAURA Technology Group | Digital China vs. APT Medical | Digital China vs. Contemporary Amperex Technology |
| UE Furniture vs. State Grid InformationCommunication | UE Furniture vs. Dawning Information Industry | UE Furniture vs. Shenzhen SDG Information | UE Furniture vs. Digital China Information |
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.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |