Correlation Between UE Furniture and Zhejiang JIULI
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By analyzing existing cross correlation between UE Furniture Co and Zhejiang JIULI Hi tech, you can compare the effects of market volatilities on UE Furniture and Zhejiang JIULI 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 Zhejiang JIULI. Check out your portfolio center. Please also check ongoing floating volatility patterns of UE Furniture and Zhejiang JIULI.
Diversification Opportunities for UE Furniture and Zhejiang JIULI
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 603600 and Zhejiang is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding UE Furniture Co and Zhejiang JIULI Hi tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang JIULI Hi 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 Zhejiang JIULI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang JIULI Hi has no effect on the direction of UE Furniture i.e., UE Furniture and Zhejiang JIULI go up and down completely randomly.
Pair Corralation between UE Furniture and Zhejiang JIULI
Assuming the 90 days trading horizon UE Furniture Co is expected to generate 1.01 times more return on investment than Zhejiang JIULI. However, UE Furniture is 1.01 times more volatile than Zhejiang JIULI Hi tech. It trades about 0.16 of its potential returns per unit of risk. Zhejiang JIULI Hi tech is currently generating about 0.13 per unit of risk. If you would invest 895.00 in UE Furniture Co on August 25, 2024 and sell it today you would earn a total of 226.00 from holding UE Furniture Co or generate 25.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
UE Furniture Co vs. Zhejiang JIULI Hi tech
Performance |
| Timeline |
| UE Furniture |
| Zhejiang JIULI Hi |
UE Furniture and Zhejiang JIULI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UE Furniture and Zhejiang JIULI
The main advantage of trading using opposite UE Furniture and Zhejiang JIULI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UE Furniture position performs unexpectedly, Zhejiang JIULI 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 Zhejiang JIULI will offset losses from the drop in Zhejiang JIULI's long position.| UE Furniture vs. Jiangsu Yanghe Brewery | UE Furniture vs. Shandong Mining Machinery | UE Furniture vs. Eastern Air Logistics | UE Furniture vs. Chengtun Mining Group |
| Zhejiang JIULI vs. Zijin Mining Group | Zhejiang JIULI vs. Wanhua Chemical Group | Zhejiang JIULI vs. Baoshan Iron Steel | Zhejiang JIULI 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 CEOs Directory module to screen CEOs from public companies around the world.
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