Correlation Between Hunan Mendale and UE Furniture
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By analyzing existing cross correlation between Hunan Mendale Hometextile and UE Furniture Co, you can compare the effects of market volatilities on Hunan Mendale 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 Hunan Mendale with a short position of UE Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Mendale and UE Furniture.
Diversification Opportunities for Hunan Mendale and UE Furniture
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunan and 603600 is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Mendale Hometextile and UE Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UE Furniture and Hunan Mendale 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 Hunan Mendale Hometextile 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 Hunan Mendale i.e., Hunan Mendale and UE Furniture go up and down completely randomly.
Pair Corralation between Hunan Mendale and UE Furniture
Assuming the 90 days trading horizon Hunan Mendale Hometextile is expected to under-perform the UE Furniture. In addition to that, Hunan Mendale is 1.08 times more volatile than UE Furniture Co. It trades about 0.0 of its total potential returns per unit of risk. UE Furniture Co is currently generating about 0.04 per unit of volatility. If you would invest 945.00 in UE Furniture Co on September 1, 2024 and sell it today you would earn a total of 225.00 from holding UE Furniture Co or generate 23.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Mendale Hometextile vs. UE Furniture Co
Performance |
| Timeline |
| Hunan Mendale Hometextile |
| UE Furniture |
Hunan Mendale and UE Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Mendale and UE Furniture
The main advantage of trading using opposite Hunan Mendale and UE Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Mendale 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.| Hunan Mendale vs. Chengdu Kanghua Biological | Hunan Mendale vs. Beijing Wantai Biological | Hunan Mendale vs. Suzhou Novoprotein Scientific | Hunan Mendale vs. Aluminum Corp of |
| UE Furniture vs. State Grid InformationCommunication | UE Furniture vs. Anji Foodstuff Co | UE Furniture vs. Tongyu Communication | UE Furniture vs. Ligao Foods CoLtd |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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