Correlation Between Chengdu Spaceon and UE Furniture
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By analyzing existing cross correlation between Chengdu Spaceon Electronics and UE Furniture Co, you can compare the effects of market volatilities on Chengdu Spaceon 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 Chengdu Spaceon with a short position of UE Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Spaceon and UE Furniture.
Diversification Opportunities for Chengdu Spaceon and UE Furniture
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chengdu and 603600 is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Spaceon Electronics and UE Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UE Furniture and Chengdu Spaceon 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 Chengdu Spaceon Electronics 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 Chengdu Spaceon i.e., Chengdu Spaceon and UE Furniture go up and down completely randomly.
Pair Corralation between Chengdu Spaceon and UE Furniture
Assuming the 90 days trading horizon Chengdu Spaceon Electronics is expected to under-perform the UE Furniture. In addition to that, Chengdu Spaceon is 1.58 times more volatile than UE Furniture Co. It trades about -0.18 of its total potential returns per unit of risk. UE Furniture Co is currently generating about -0.21 per unit of volatility. If you would invest 1,265 in UE Furniture Co on August 29, 2024 and sell it today you would lose (106.00) from holding UE Furniture Co or give up 8.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Spaceon Electronics vs. UE Furniture Co
Performance |
| Timeline |
| Chengdu Spaceon Elec |
| UE Furniture |
Chengdu Spaceon and UE Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Spaceon and UE Furniture
The main advantage of trading using opposite Chengdu Spaceon and UE Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Spaceon 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.| Chengdu Spaceon vs. Shenzhen MYS Environmental | Chengdu Spaceon vs. AVIC Fund Management | Chengdu Spaceon vs. Shenzhen Bingchuan Network | Chengdu Spaceon vs. Penghua Shenzhen Energy |
| UE Furniture vs. Guangzhou Haige Communications | UE Furniture vs. MayAir Technology Co | UE Furniture vs. Eastern Communications Co | UE Furniture vs. Sunwave Communications Co |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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