Correlation Between UE Furniture and Nanxing Furniture
Specify exactly 2 symbols:
By analyzing existing cross correlation between UE Furniture Co and Nanxing Furniture Machinery, you can compare the effects of market volatilities on UE Furniture and Nanxing Furniture 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 Nanxing Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of UE Furniture and Nanxing Furniture.
Diversification Opportunities for UE Furniture and Nanxing Furniture
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between 603600 and Nanxing is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding UE Furniture Co and Nanxing Furniture Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanxing Furniture 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 Nanxing Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanxing Furniture has no effect on the direction of UE Furniture i.e., UE Furniture and Nanxing Furniture go up and down completely randomly.
Pair Corralation between UE Furniture and Nanxing Furniture
Assuming the 90 days trading horizon UE Furniture Co is expected to under-perform the Nanxing Furniture. But the stock apears to be less risky and, when comparing its historical volatility, UE Furniture Co is 2.1 times less risky than Nanxing Furniture. The stock trades about -0.25 of its potential returns per unit of risk. The Nanxing Furniture Machinery is currently generating about 0.5 of returns per unit of risk over similar time horizon. If you would invest 1,749 in Nanxing Furniture Machinery on November 27, 2024 and sell it today you would earn a total of 704.00 from holding Nanxing Furniture Machinery or generate 40.25% 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. Nanxing Furniture Machinery
Performance |
| Timeline |
| UE Furniture |
| Nanxing Furniture |
UE Furniture and Nanxing Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UE Furniture and Nanxing Furniture
The main advantage of trading using opposite UE Furniture and Nanxing Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UE Furniture position performs unexpectedly, Nanxing Furniture 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 Nanxing Furniture will offset losses from the drop in Nanxing Furniture's long position.| UE Furniture vs. Aofu Environmental Technology | UE Furniture vs. Tongxing Environmental Protection | UE Furniture vs. JCHX Mining Management | UE Furniture vs. Eit Environmental Development |
| Nanxing Furniture vs. Ningbo Tip Rubber | Nanxing Furniture vs. Jilin OLED Material | Nanxing Furniture vs. Orinko Advanced Plastics | Nanxing Furniture vs. Western Metal Materials |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |