Correlation Between Beijing Mainstreets and UE Furniture
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By analyzing existing cross correlation between Beijing Mainstreets Investment and UE Furniture Co, you can compare the effects of market volatilities on Beijing Mainstreets 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 Beijing Mainstreets with a short position of UE Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and UE Furniture.
Diversification Opportunities for Beijing Mainstreets and UE Furniture
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and 603600 is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and UE Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UE Furniture and Beijing Mainstreets 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 Beijing Mainstreets Investment 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 Beijing Mainstreets i.e., Beijing Mainstreets and UE Furniture go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and UE Furniture
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to generate 1.84 times more return on investment than UE Furniture. However, Beijing Mainstreets is 1.84 times more volatile than UE Furniture Co. It trades about 0.08 of its potential returns per unit of risk. UE Furniture Co is currently generating about -0.08 per unit of risk. If you would invest 233.00 in Beijing Mainstreets Investment on September 4, 2024 and sell it today you would earn a total of 11.00 from holding Beijing Mainstreets Investment or generate 4.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Mainstreets Investment vs. UE Furniture Co
Performance |
| Timeline |
| Beijing Mainstreets |
| UE Furniture |
Beijing Mainstreets and UE Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and UE Furniture
The main advantage of trading using opposite Beijing Mainstreets and UE Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets 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.| Beijing Mainstreets vs. UE Furniture Co | Beijing Mainstreets vs. Super Dragon Engineering Plastics | Beijing Mainstreets vs. Xinke Material | Beijing Mainstreets vs. Fuda Alloy Materials |
| UE Furniture vs. Nanjing Putian Telecommunications | UE Furniture vs. Kangyue Technology Co | UE Furniture vs. Shenzhen Hifuture Electric | UE Furniture vs. Tianjin Realty Development |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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