Correlation Between UE Furniture and Runjian Communication
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By analyzing existing cross correlation between UE Furniture Co and Runjian Communication Co, you can compare the effects of market volatilities on UE Furniture and Runjian Communication 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 Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of UE Furniture and Runjian Communication.
Diversification Opportunities for UE Furniture and Runjian Communication
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 603600 and Runjian is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding UE Furniture Co and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication 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 Runjian Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Runjian Communication has no effect on the direction of UE Furniture i.e., UE Furniture and Runjian Communication go up and down completely randomly.
Pair Corralation between UE Furniture and Runjian Communication
Assuming the 90 days trading horizon UE Furniture Co is expected to generate 0.76 times more return on investment than Runjian Communication. However, UE Furniture Co is 1.32 times less risky than Runjian Communication. It trades about 0.02 of its potential returns per unit of risk. Runjian Communication Co is currently generating about 0.0 per unit of risk. If you would invest 1,065 in UE Furniture Co on August 25, 2024 and sell it today you would earn a total of 56.00 from holding UE Furniture Co or generate 5.26% 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. Runjian Communication Co
Performance |
| Timeline |
| UE Furniture |
| Runjian Communication |
UE Furniture and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UE Furniture and Runjian Communication
The main advantage of trading using opposite UE Furniture and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UE Furniture position performs unexpectedly, Runjian Communication 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 Runjian Communication will offset losses from the drop in Runjian Communication'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 |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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