Correlation Between UE Furniture and Huatian Hotel
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By analyzing existing cross correlation between UE Furniture Co and Huatian Hotel Group, you can compare the effects of market volatilities on UE Furniture and Huatian Hotel 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 UE Furniture with a short position of Huatian Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of UE Furniture and Huatian Hotel.
Diversification Opportunities for UE Furniture and Huatian Hotel
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between 603600 and Huatian is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding UE Furniture Co and Huatian Hotel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huatian Hotel Group and UE 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 UE Furniture Co are associated (or correlated) with Huatian Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huatian Hotel Group has no effect on the direction of UE Furniture i.e., UE Furniture and Huatian Hotel go up and down completely randomly.
Pair Corralation between UE Furniture and Huatian Hotel
Assuming the 90 days trading horizon UE Furniture Co is expected to generate 1.27 times more return on investment than Huatian Hotel. However, UE Furniture is 1.27 times more volatile than Huatian Hotel Group. It trades about 0.11 of its potential returns per unit of risk. Huatian Hotel Group is currently generating about -0.16 per unit of risk. If you would invest 1,184 in UE Furniture Co on October 28, 2024 and sell it today you would earn a total of 77.00 from holding UE Furniture Co or generate 6.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UE Furniture Co vs. Huatian Hotel Group
Performance |
| Timeline |
| UE Furniture |
| Huatian Hotel Group |
UE Furniture and Huatian Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UE Furniture and Huatian Hotel
The main advantage of trading using opposite UE Furniture and Huatian Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UE Furniture position performs unexpectedly, Huatian Hotel 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 Huatian Hotel will offset losses from the drop in Huatian Hotel's long position.| UE Furniture vs. Zhangjiagang Freetrade Science | UE Furniture vs. Xiamen Goldenhome Co | UE Furniture vs. Shengda Mining Co | UE Furniture vs. Qumei Furniture Group |
| Huatian Hotel vs. Dareway Software Co | Huatian Hotel vs. Lutian Machinery Co | Huatian Hotel vs. Linzhou Heavy Machinery | Huatian Hotel vs. Linewell Software 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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