Correlation Between Xilinmen Furniture and AUPU Home
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xilinmen Furniture Co and AUPU Home Style, you can compare the effects of market volatilities on Xilinmen Furniture and AUPU Home 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 Xilinmen Furniture with a short position of AUPU Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xilinmen Furniture and AUPU Home.
Diversification Opportunities for Xilinmen Furniture and AUPU Home
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xilinmen and AUPU is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Xilinmen Furniture Co and AUPU Home Style in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUPU Home Style and Xilinmen Furniture 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 Xilinmen Furniture Co are associated (or correlated) with AUPU Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUPU Home Style has no effect on the direction of Xilinmen Furniture i.e., Xilinmen Furniture and AUPU Home go up and down completely randomly.
Pair Corralation between Xilinmen Furniture and AUPU Home
Assuming the 90 days trading horizon Xilinmen Furniture is expected to generate 1.42 times less return on investment than AUPU Home. In addition to that, Xilinmen Furniture is 1.44 times more volatile than AUPU Home Style. It trades about 0.02 of its total potential returns per unit of risk. AUPU Home Style is currently generating about 0.03 per unit of volatility. If you would invest 1,058 in AUPU Home Style on September 3, 2024 and sell it today you would earn a total of 66.00 from holding AUPU Home Style or generate 6.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xilinmen Furniture Co vs. AUPU Home Style
Performance |
| Timeline |
| Xilinmen Furniture |
| AUPU Home Style |
Xilinmen Furniture and AUPU Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xilinmen Furniture and AUPU Home
The main advantage of trading using opposite Xilinmen Furniture and AUPU Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xilinmen Furniture position performs unexpectedly, AUPU Home 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 AUPU Home will offset losses from the drop in AUPU Home's long position.| Xilinmen Furniture vs. Tongxing Environmental Protection | Xilinmen Furniture vs. Ningbo Ligong Online | Xilinmen Furniture vs. Guangdong Advertising Co | Xilinmen Furniture vs. Bengang Steel Plates |
| AUPU Home vs. PetroChina Co Ltd | AUPU Home vs. China Mobile Limited | AUPU Home vs. Industrial and Commercial | AUPU Home vs. China Life Insurance |
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.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |