Correlation Between Zhejiang JIULI and UE Furniture
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By analyzing existing cross correlation between Zhejiang JIULI Hi tech and UE Furniture Co, you can compare the effects of market volatilities on Zhejiang JIULI 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 Zhejiang JIULI with a short position of UE Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang JIULI and UE Furniture.
Diversification Opportunities for Zhejiang JIULI and UE Furniture
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and 603600 is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang JIULI Hi tech and UE Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UE Furniture and Zhejiang JIULI 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 Zhejiang JIULI Hi tech 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 Zhejiang JIULI i.e., Zhejiang JIULI and UE Furniture go up and down completely randomly.
Pair Corralation between Zhejiang JIULI and UE Furniture
Assuming the 90 days trading horizon Zhejiang JIULI Hi tech is expected to generate 0.94 times more return on investment than UE Furniture. However, Zhejiang JIULI Hi tech is 1.06 times less risky than UE Furniture. It trades about 0.04 of its potential returns per unit of risk. UE Furniture Co is currently generating about -0.2 per unit of risk. If you would invest 2,327 in Zhejiang JIULI Hi tech on August 29, 2024 and sell it today you would earn a total of 25.00 from holding Zhejiang JIULI Hi tech or generate 1.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang JIULI Hi tech vs. UE Furniture Co
Performance |
| Timeline |
| Zhejiang JIULI Hi |
| UE Furniture |
Zhejiang JIULI and UE Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang JIULI and UE Furniture
The main advantage of trading using opposite Zhejiang JIULI and UE Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang JIULI 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.| Zhejiang JIULI vs. Shaanxi Broadcast TV | Zhejiang JIULI vs. Anhui Transport Consulting | Zhejiang JIULI vs. Longjian Road Bridge | Zhejiang JIULI vs. King Strong New Material |
| UE Furniture vs. Zhejiang Yayi Metal | UE Furniture vs. Tieling Newcity Investment | UE Furniture vs. Shandong Hongchuang Aluminum | UE Furniture vs. Western Metal Materials |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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