Correlation Between UE Furniture and Xiandai Investment
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By analyzing existing cross correlation between UE Furniture Co and Xiandai Investment Co, you can compare the effects of market volatilities on UE Furniture and Xiandai Investment 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 Xiandai Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of UE Furniture and Xiandai Investment.
Diversification Opportunities for UE Furniture and Xiandai Investment
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between 603600 and Xiandai is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding UE Furniture Co and Xiandai Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiandai Investment 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 Xiandai Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiandai Investment has no effect on the direction of UE Furniture i.e., UE Furniture and Xiandai Investment go up and down completely randomly.
Pair Corralation between UE Furniture and Xiandai Investment
Assuming the 90 days trading horizon UE Furniture Co is expected to generate 1.6 times more return on investment than Xiandai Investment. However, UE Furniture is 1.6 times more volatile than Xiandai Investment Co. It trades about 0.02 of its potential returns per unit of risk. Xiandai Investment Co is currently generating about 0.01 per unit of risk. If you would invest 1,020 in UE Furniture Co on October 14, 2024 and sell it today you would earn a total of 150.00 from holding UE Furniture Co or generate 14.71% 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. Xiandai Investment Co
Performance |
| Timeline |
| UE Furniture |
| Xiandai Investment |
UE Furniture and Xiandai Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UE Furniture and Xiandai Investment
The main advantage of trading using opposite UE Furniture and Xiandai Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UE Furniture position performs unexpectedly, Xiandai Investment 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 Xiandai Investment will offset losses from the drop in Xiandai Investment's long position.| UE Furniture vs. Beijing Enlight Media | UE Furniture vs. Henan Shuanghui Investment | UE Furniture vs. Shuhua Sports Co | UE Furniture vs. Lootom Telcovideo Network |
| Xiandai Investment vs. Ningbo Homelink Eco iTech | Xiandai Investment vs. DO Home Collection | Xiandai Investment vs. Sharetronic Data Technology | Xiandai Investment vs. UE Furniture 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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