Correlation Between Unisplendour Corp and UE Furniture
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By analyzing existing cross correlation between Unisplendour Corp and UE Furniture Co, you can compare the effects of market volatilities on Unisplendour Corp 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 Unisplendour Corp with a short position of UE Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unisplendour Corp and UE Furniture.
Diversification Opportunities for Unisplendour Corp and UE Furniture
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Unisplendour and 603600 is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Unisplendour Corp and UE Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UE Furniture and Unisplendour Corp 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 Unisplendour Corp 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 Unisplendour Corp i.e., Unisplendour Corp and UE Furniture go up and down completely randomly.
Pair Corralation between Unisplendour Corp and UE Furniture
Assuming the 90 days trading horizon Unisplendour Corp is expected to under-perform the UE Furniture. But the stock apears to be less risky and, when comparing its historical volatility, Unisplendour Corp is 1.1 times less risky than UE Furniture. The stock trades about -0.04 of its potential returns per unit of risk. The UE Furniture Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,200 in UE Furniture Co on November 3, 2024 and sell it today you would earn a total of 85.00 from holding UE Furniture Co or generate 7.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unisplendour Corp vs. UE Furniture Co
Performance |
| Timeline |
| Unisplendour Corp |
| UE Furniture |
Unisplendour Corp and UE Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unisplendour Corp and UE Furniture
The main advantage of trading using opposite Unisplendour Corp and UE Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unisplendour Corp 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.| Unisplendour Corp vs. XinJiang GuoTong Pipeline | Unisplendour Corp vs. Ligao Foods CoLtd | Unisplendour Corp vs. Jiamei Food Packaging | Unisplendour Corp vs. Shenzhen AV Display Co |
| UE Furniture vs. Fujian Longzhou Transportation | UE Furniture vs. Xinjiang Beixin RoadBridge | UE Furniture vs. Masterwork Machinery | UE Furniture vs. Sichuan Fulin Transportation |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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