Correlation Between Vanfund Urban and UE Furniture
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By analyzing existing cross correlation between Vanfund Urban Investment and UE Furniture Co, you can compare the effects of market volatilities on Vanfund Urban 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 Vanfund Urban with a short position of UE Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanfund Urban and UE Furniture.
Diversification Opportunities for Vanfund Urban and UE Furniture
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vanfund and 603600 is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Vanfund Urban 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 Vanfund Urban 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 Vanfund Urban 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 Vanfund Urban i.e., Vanfund Urban and UE Furniture go up and down completely randomly.
Pair Corralation between Vanfund Urban and UE Furniture
Assuming the 90 days trading horizon Vanfund Urban Investment is expected to generate 1.08 times more return on investment than UE Furniture. However, Vanfund Urban is 1.08 times more volatile than UE Furniture Co. It trades about 0.17 of its potential returns per unit of risk. UE Furniture Co is currently generating about -0.25 per unit of risk. If you would invest 494.00 in Vanfund Urban Investment on November 27, 2024 and sell it today you would earn a total of 29.00 from holding Vanfund Urban Investment or generate 5.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanfund Urban Investment vs. UE Furniture Co
Performance |
| Timeline |
| Vanfund Urban Investment |
| UE Furniture |
Vanfund Urban and UE Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanfund Urban and UE Furniture
The main advantage of trading using opposite Vanfund Urban and UE Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanfund Urban 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.| Vanfund Urban vs. Ligao Foods CoLtd | Vanfund Urban vs. Everdisplay Optronics Shanghai | Vanfund Urban vs. Shantou Wanshun Package | Vanfund Urban vs. Anji Foodstuff Co |
| UE Furniture vs. Aofu Environmental Technology | UE Furniture vs. Tongxing Environmental Protection | UE Furniture vs. JCHX Mining Management | UE Furniture vs. Eit Environmental 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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