Correlation Between UE Furniture and Jiangsu Yanghe
Specify exactly 2 symbols:
By analyzing existing cross correlation between UE Furniture Co and Jiangsu Yanghe Brewery, you can compare the effects of market volatilities on UE Furniture and Jiangsu Yanghe 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 Jiangsu Yanghe. Check out your portfolio center. Please also check ongoing floating volatility patterns of UE Furniture and Jiangsu Yanghe.
Diversification Opportunities for UE Furniture and Jiangsu Yanghe
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 603600 and Jiangsu is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding UE Furniture Co and Jiangsu Yanghe Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yanghe Brewery 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 Jiangsu Yanghe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yanghe Brewery has no effect on the direction of UE Furniture i.e., UE Furniture and Jiangsu Yanghe go up and down completely randomly.
Pair Corralation between UE Furniture and Jiangsu Yanghe
Assuming the 90 days trading horizon UE Furniture Co is expected to generate 1.42 times more return on investment than Jiangsu Yanghe. However, UE Furniture is 1.42 times more volatile than Jiangsu Yanghe Brewery. It trades about 0.04 of its potential returns per unit of risk. Jiangsu Yanghe Brewery is currently generating about -0.06 per unit of risk. If you would invest 889.00 in UE Furniture Co on August 29, 2024 and sell it today you would earn a total of 270.00 from holding UE Furniture Co or generate 30.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UE Furniture Co vs. Jiangsu Yanghe Brewery
Performance |
| Timeline |
| UE Furniture |
| Jiangsu Yanghe Brewery |
UE Furniture and Jiangsu Yanghe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UE Furniture and Jiangsu Yanghe
The main advantage of trading using opposite UE Furniture and Jiangsu Yanghe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UE Furniture position performs unexpectedly, Jiangsu Yanghe 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 Jiangsu Yanghe will offset losses from the drop in Jiangsu Yanghe's long position.| UE Furniture vs. Guangzhou Haige Communications | UE Furniture vs. MayAir Technology Co | UE Furniture vs. Eastern Communications Co | UE Furniture vs. Sunwave Communications Co |
| Jiangsu Yanghe vs. BYD Co Ltd | Jiangsu Yanghe vs. China Mobile Limited | Jiangsu Yanghe vs. Agricultural Bank of | Jiangsu Yanghe vs. Industrial and Commercial |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |