Correlation Between Chengtun Mining and UE Furniture
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By analyzing existing cross correlation between Chengtun Mining Group and UE Furniture Co, you can compare the effects of market volatilities on Chengtun Mining 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 Chengtun Mining with a short position of UE Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and UE Furniture.
Diversification Opportunities for Chengtun Mining and UE Furniture
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chengtun and 603600 is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and UE Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UE Furniture and Chengtun Mining 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 Chengtun Mining Group 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 Chengtun Mining i.e., Chengtun Mining and UE Furniture go up and down completely randomly.
Pair Corralation between Chengtun Mining and UE Furniture
Assuming the 90 days trading horizon Chengtun Mining is expected to generate 1.82 times less return on investment than UE Furniture. In addition to that, Chengtun Mining is 1.04 times more volatile than UE Furniture Co. It trades about 0.02 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 August 25, 2024 and sell it today you would earn a total of 176.00 from holding UE Furniture Co or generate 18.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. UE Furniture Co
Performance |
| Timeline |
| Chengtun Mining Group |
| UE Furniture |
Chengtun Mining and UE Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and UE Furniture
The main advantage of trading using opposite Chengtun Mining and UE Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining 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.| Chengtun Mining vs. Zijin Mining Group | Chengtun Mining vs. Wanhua Chemical Group | Chengtun Mining vs. Baoshan Iron Steel | Chengtun Mining vs. Shandong Gold Mining |
| UE Furniture vs. Jiangsu Yanghe Brewery | UE Furniture vs. Shandong Mining Machinery | UE Furniture vs. Eastern Air Logistics | UE Furniture vs. Chengtun Mining Group |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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