Correlation Between Shengda Mining and UE Furniture
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By analyzing existing cross correlation between Shengda Mining Co and UE Furniture Co, you can compare the effects of market volatilities on Shengda Mining 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 Shengda Mining with a short position of UE Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and UE Furniture.
Diversification Opportunities for Shengda Mining and UE Furniture
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shengda and 603600 is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and UE Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UE Furniture and Shengda Mining 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 Shengda Mining Co 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 Shengda Mining i.e., Shengda Mining and UE Furniture go up and down completely randomly.
Pair Corralation between Shengda Mining and UE Furniture
Assuming the 90 days trading horizon Shengda Mining Co is expected to generate 0.59 times more return on investment than UE Furniture. However, Shengda Mining Co is 1.69 times less risky than UE Furniture. It trades about 0.32 of its potential returns per unit of risk. UE Furniture Co is currently generating about 0.1 per unit of risk. If you would invest 1,227 in Shengda Mining Co on October 29, 2024 and sell it today you would earn a total of 163.00 from holding Shengda Mining Co or generate 13.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shengda Mining Co vs. UE Furniture Co
Performance |
| Timeline |
| Shengda Mining |
| UE Furniture |
Shengda Mining and UE Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and UE Furniture
The main advantage of trading using opposite Shengda Mining and UE Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining 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.| Shengda Mining vs. China Building Material | Shengda Mining vs. Jilin OLED Material | Shengda Mining vs. Advanced Technology Materials | Shengda Mining vs. Super Dragon Engineering Plastics |
| UE Furniture vs. Hangzhou Arcvideo Technology | UE Furniture vs. Lootom Telcovideo Network | UE Furniture vs. Jiangsu Yanghe Brewery | UE Furniture vs. Sunny Loan Top |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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