Correlation Between Cultural Investment and UE Furniture
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By analyzing existing cross correlation between Cultural Investment Holdings and UE Furniture Co, you can compare the effects of market volatilities on Cultural Investment 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 Cultural Investment with a short position of UE Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and UE Furniture.
Diversification Opportunities for Cultural Investment and UE Furniture
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cultural and 603600 is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and UE Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UE Furniture and Cultural Investment 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 Cultural Investment Holdings 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 Cultural Investment i.e., Cultural Investment and UE Furniture go up and down completely randomly.
Pair Corralation between Cultural Investment and UE Furniture
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to generate 1.48 times more return on investment than UE Furniture. However, Cultural Investment is 1.48 times more volatile than UE Furniture Co. It trades about 0.1 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 198.00 in Cultural Investment Holdings on September 3, 2024 and sell it today you would earn a total of 22.00 from holding Cultural Investment Holdings or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cultural Investment Holdings vs. UE Furniture Co
Performance |
| Timeline |
| Cultural Investment |
| UE Furniture |
Cultural Investment and UE Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and UE Furniture
The main advantage of trading using opposite Cultural Investment and UE Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment 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.| Cultural Investment vs. Anji Foodstuff Co | Cultural Investment vs. Shenzhen Clou Electronics | Cultural Investment vs. Muyuan Foodstuff Co | Cultural Investment vs. Leyard Optoelectronic |
| UE Furniture vs. Cultural Investment Holdings | UE Furniture vs. Gome Telecom Equipment | UE Furniture vs. Bus Online Co | UE Furniture vs. Holitech Technology 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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