Correlation Between UE Furniture and Chongqing Shunbo
Specify exactly 2 symbols:
By analyzing existing cross correlation between UE Furniture Co and Chongqing Shunbo Aluminum, you can compare the effects of market volatilities on UE Furniture and Chongqing Shunbo 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 Chongqing Shunbo. Check out your portfolio center. Please also check ongoing floating volatility patterns of UE Furniture and Chongqing Shunbo.
Diversification Opportunities for UE Furniture and Chongqing Shunbo
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between 603600 and Chongqing is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding UE Furniture Co and Chongqing Shunbo Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Shunbo Aluminum 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 Chongqing Shunbo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Shunbo Aluminum has no effect on the direction of UE Furniture i.e., UE Furniture and Chongqing Shunbo go up and down completely randomly.
Pair Corralation between UE Furniture and Chongqing Shunbo
Assuming the 90 days trading horizon UE Furniture Co is expected to generate 1.81 times more return on investment than Chongqing Shunbo. However, UE Furniture is 1.81 times more volatile than Chongqing Shunbo Aluminum. It trades about 0.11 of its potential returns per unit of risk. Chongqing Shunbo Aluminum is currently generating about -0.09 per unit of risk. If you would invest 1,184 in UE Furniture Co on October 28, 2024 and sell it today you would earn a total of 77.00 from holding UE Furniture Co or generate 6.5% 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. Chongqing Shunbo Aluminum
Performance |
| Timeline |
| UE Furniture |
| Chongqing Shunbo Aluminum |
UE Furniture and Chongqing Shunbo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UE Furniture and Chongqing Shunbo
The main advantage of trading using opposite UE Furniture and Chongqing Shunbo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UE Furniture position performs unexpectedly, Chongqing Shunbo 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 Chongqing Shunbo will offset losses from the drop in Chongqing Shunbo's long position.| UE Furniture vs. Zhangjiagang Freetrade Science | UE Furniture vs. Xiamen Goldenhome Co | UE Furniture vs. Shengda Mining Co | UE Furniture vs. Qumei Furniture Group |
| Chongqing Shunbo vs. Zijin Mining Group | Chongqing Shunbo vs. Wanhua Chemical Group | Chongqing Shunbo vs. Baoshan Iron Steel | Chongqing Shunbo 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |