Correlation Between Anhui Jianghuai and UE Furniture
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Jianghuai Automobile and UE Furniture Co, you can compare the effects of market volatilities on Anhui Jianghuai 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 Anhui Jianghuai with a short position of UE Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and UE Furniture.
Diversification Opportunities for Anhui Jianghuai and UE Furniture
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and 603600 is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and UE Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UE Furniture and Anhui Jianghuai 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 Anhui Jianghuai Automobile 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 Anhui Jianghuai i.e., Anhui Jianghuai and UE Furniture go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and UE Furniture
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 1.49 times more return on investment than UE Furniture. However, Anhui Jianghuai is 1.49 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 1,364 in Anhui Jianghuai Automobile on September 4, 2024 and sell it today you would earn a total of 2,252 from holding Anhui Jianghuai Automobile or generate 165.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. UE Furniture Co
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| UE Furniture |
Anhui Jianghuai and UE Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and UE Furniture
The main advantage of trading using opposite Anhui Jianghuai and UE Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai 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.| Anhui Jianghuai vs. Industrial and Commercial | Anhui Jianghuai vs. China Construction Bank | Anhui Jianghuai vs. Agricultural Bank of | Anhui Jianghuai vs. Bank of China |
| UE Furniture vs. Nanjing Putian Telecommunications | UE Furniture vs. Kangyue Technology Co | UE Furniture vs. Shenzhen Hifuture Electric | UE Furniture vs. Tianjin Realty Development |
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.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |