Correlation Between UE Furniture and CGN Nuclear
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By analyzing existing cross correlation between UE Furniture Co and CGN Nuclear Technology, you can compare the effects of market volatilities on UE Furniture and CGN Nuclear 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 CGN Nuclear. Check out your portfolio center. Please also check ongoing floating volatility patterns of UE Furniture and CGN Nuclear.
Diversification Opportunities for UE Furniture and CGN Nuclear
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 603600 and CGN is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding UE Furniture Co and CGN Nuclear Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CGN Nuclear Technology 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 CGN Nuclear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CGN Nuclear Technology has no effect on the direction of UE Furniture i.e., UE Furniture and CGN Nuclear go up and down completely randomly.
Pair Corralation between UE Furniture and CGN Nuclear
Assuming the 90 days trading horizon UE Furniture Co is expected to under-perform the CGN Nuclear. But the stock apears to be less risky and, when comparing its historical volatility, UE Furniture Co is 1.51 times less risky than CGN Nuclear. The stock trades about -0.14 of its potential returns per unit of risk. The CGN Nuclear Technology is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 725.00 in CGN Nuclear Technology on September 1, 2024 and sell it today you would earn a total of 70.00 from holding CGN Nuclear Technology or generate 9.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
UE Furniture Co vs. CGN Nuclear Technology
Performance |
| Timeline |
| UE Furniture |
| CGN Nuclear Technology |
UE Furniture and CGN Nuclear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UE Furniture and CGN Nuclear
The main advantage of trading using opposite UE Furniture and CGN Nuclear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UE Furniture position performs unexpectedly, CGN Nuclear 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 CGN Nuclear will offset losses from the drop in CGN Nuclear's long position.| UE Furniture vs. State Grid InformationCommunication | UE Furniture vs. Anji Foodstuff Co | UE Furniture vs. Tongyu Communication | UE Furniture vs. Ligao Foods CoLtd |
| CGN Nuclear vs. Zijin Mining Group | CGN Nuclear vs. Wanhua Chemical Group | CGN Nuclear vs. Baoshan Iron Steel | CGN Nuclear vs. Shandong Gold Mining |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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