Correlation Between UE Furniture and Integrated Electronic
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By analyzing existing cross correlation between UE Furniture Co and Integrated Electronic Systems, you can compare the effects of market volatilities on UE Furniture and Integrated Electronic 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 Integrated Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of UE Furniture and Integrated Electronic.
Diversification Opportunities for UE Furniture and Integrated Electronic
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 603600 and Integrated is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding UE Furniture Co and Integrated Electronic Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Electronic 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 Integrated Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Electronic has no effect on the direction of UE Furniture i.e., UE Furniture and Integrated Electronic go up and down completely randomly.
Pair Corralation between UE Furniture and Integrated Electronic
Assuming the 90 days trading horizon UE Furniture is expected to generate 3.48 times less return on investment than Integrated Electronic. But when comparing it to its historical volatility, UE Furniture Co is 1.94 times less risky than Integrated Electronic. It trades about 0.06 of its potential returns per unit of risk. Integrated Electronic Systems is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 715.00 in Integrated Electronic Systems on September 13, 2024 and sell it today you would earn a total of 47.00 from holding Integrated Electronic Systems or generate 6.57% 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. Integrated Electronic Systems
Performance |
| Timeline |
| UE Furniture |
| Integrated Electronic |
UE Furniture and Integrated Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UE Furniture and Integrated Electronic
The main advantage of trading using opposite UE Furniture and Integrated Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UE Furniture position performs unexpectedly, Integrated Electronic 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 Integrated Electronic will offset losses from the drop in Integrated Electronic's long position.| UE Furniture vs. Industrial and Commercial | UE Furniture vs. China Construction Bank | UE Furniture vs. Agricultural Bank of | UE Furniture vs. Bank of China |
| Integrated Electronic vs. Industrial and Commercial | Integrated Electronic vs. Agricultural Bank of | Integrated Electronic vs. China Construction Bank | Integrated Electronic vs. Bank of China |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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