Correlation Between Der International and UE Furniture
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By analyzing existing cross correlation between Der International Home and UE Furniture Co, you can compare the effects of market volatilities on Der International 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 Der International with a short position of UE Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Der International and UE Furniture.
Diversification Opportunities for Der International and UE Furniture
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Der and 603600 is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Der International Home and UE Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UE Furniture and Der International 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 Der International Home 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 Der International i.e., Der International and UE Furniture go up and down completely randomly.
Pair Corralation between Der International and UE Furniture
Assuming the 90 days trading horizon Der International Home is expected to generate 1.29 times more return on investment than UE Furniture. However, Der International is 1.29 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 0.16 per unit of risk. If you would invest 401.00 in Der International Home on August 31, 2024 and sell it today you would earn a total of 130.00 from holding Der International Home or generate 32.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Der International Home vs. UE Furniture Co
Performance |
| Timeline |
| Der International Home |
| UE Furniture |
Der International and UE Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Der International and UE Furniture
The main advantage of trading using opposite Der International and UE Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Der International 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.| Der International vs. Cultural Investment Holdings | Der International vs. Gome Telecom Equipment | Der International vs. Bus Online Co | Der International vs. Holitech Technology Co |
| UE Furniture vs. State Grid InformationCommunication | UE Furniture vs. Dawning Information Industry | UE Furniture vs. Shenzhen SDG Information | UE Furniture vs. Digital China Information |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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