Correlation Between Xinjiang Communications and UE Furniture
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By analyzing existing cross correlation between Xinjiang Communications Construction and UE Furniture Co, you can compare the effects of market volatilities on Xinjiang Communications 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 Xinjiang Communications with a short position of UE Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and UE Furniture.
Diversification Opportunities for Xinjiang Communications and UE Furniture
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinjiang and 603600 is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr and UE Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UE Furniture and Xinjiang Communications 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 Xinjiang Communications Construction 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 Xinjiang Communications i.e., Xinjiang Communications and UE Furniture go up and down completely randomly.
Pair Corralation between Xinjiang Communications and UE Furniture
Assuming the 90 days trading horizon Xinjiang Communications Construction is expected to generate 1.32 times more return on investment than UE Furniture. However, Xinjiang Communications is 1.32 times more volatile than UE Furniture Co. It trades about 0.07 of its potential returns per unit of risk. UE Furniture Co is currently generating about 0.03 per unit of risk. If you would invest 971.00 in Xinjiang Communications Construction on September 27, 2024 and sell it today you would earn a total of 220.00 from holding Xinjiang Communications Construction or generate 22.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Communications Constr vs. UE Furniture Co
Performance |
| Timeline |
| Xinjiang Communications |
| UE Furniture |
Xinjiang Communications and UE Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Communications and UE Furniture
The main advantage of trading using opposite Xinjiang Communications and UE Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications 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.| Xinjiang Communications vs. Agricultural Bank of | Xinjiang Communications vs. Industrial and Commercial | Xinjiang Communications vs. Bank of China | Xinjiang Communications vs. China Construction Bank |
| UE Furniture vs. BeiGene | UE Furniture vs. Kweichow Moutai Co | UE Furniture vs. Beijing Roborock Technology | UE Furniture vs. G bits Network Technology |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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