Correlation Between Xiamen Goldenhome and UE Furniture
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By analyzing existing cross correlation between Xiamen Goldenhome Co and UE Furniture Co, you can compare the effects of market volatilities on Xiamen Goldenhome 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 Xiamen Goldenhome with a short position of UE Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and UE Furniture.
Diversification Opportunities for Xiamen Goldenhome and UE Furniture
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xiamen and 603600 is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome Co and UE Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UE Furniture and Xiamen Goldenhome 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 Xiamen Goldenhome Co 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 Xiamen Goldenhome i.e., Xiamen Goldenhome and UE Furniture go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and UE Furniture
Assuming the 90 days trading horizon Xiamen Goldenhome Co is expected to under-perform the UE Furniture. But the stock apears to be less risky and, when comparing its historical volatility, Xiamen Goldenhome Co is 1.63 times less risky than UE Furniture. The stock trades about -0.08 of its potential returns per unit of risk. The UE Furniture Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,189 in UE Furniture Co on October 29, 2024 and sell it today you would earn a total of 72.00 from holding UE Furniture Co or generate 6.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Goldenhome Co vs. UE Furniture Co
Performance |
| Timeline |
| Xiamen Goldenhome |
| UE Furniture |
Xiamen Goldenhome and UE Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Goldenhome and UE Furniture
The main advantage of trading using opposite Xiamen Goldenhome and UE Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome 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.| Xiamen Goldenhome vs. Tieling Newcity Investment | Xiamen Goldenhome vs. Shanghai Material Trading | Xiamen Goldenhome vs. Zoje Resources Investment | Xiamen Goldenhome vs. Harbin Hatou Investment |
| UE Furniture vs. Hangzhou Arcvideo Technology | UE Furniture vs. Lootom Telcovideo Network | UE Furniture vs. Jiangsu Yanghe Brewery | UE Furniture vs. Sunny Loan Top |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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