Correlation Between UE Furniture and Hubei Forbon
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By analyzing existing cross correlation between UE Furniture Co and Hubei Forbon Technology, you can compare the effects of market volatilities on UE Furniture and Hubei Forbon 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 Hubei Forbon. Check out your portfolio center. Please also check ongoing floating volatility patterns of UE Furniture and Hubei Forbon.
Diversification Opportunities for UE Furniture and Hubei Forbon
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between 603600 and Hubei is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding UE Furniture Co and Hubei Forbon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Forbon Technology 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 Hubei Forbon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Forbon Technology has no effect on the direction of UE Furniture i.e., UE Furniture and Hubei Forbon go up and down completely randomly.
Pair Corralation between UE Furniture and Hubei Forbon
Assuming the 90 days trading horizon UE Furniture Co is expected to generate 1.05 times more return on investment than Hubei Forbon. However, UE Furniture is 1.05 times more volatile than Hubei Forbon Technology. It trades about 0.09 of its potential returns per unit of risk. Hubei Forbon Technology is currently generating about -0.06 per unit of risk. If you would invest 1,170 in UE Furniture Co on October 30, 2024 and sell it today you would earn a total of 115.00 from holding UE Furniture Co or generate 9.83% 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. Hubei Forbon Technology
Performance |
| Timeline |
| UE Furniture |
| Hubei Forbon Technology |
UE Furniture and Hubei Forbon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UE Furniture and Hubei Forbon
The main advantage of trading using opposite UE Furniture and Hubei Forbon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UE Furniture position performs unexpectedly, Hubei Forbon 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 Hubei Forbon will offset losses from the drop in Hubei Forbon's long position.| UE Furniture vs. Touchstone International Medical | UE Furniture vs. Lotus Health Group | UE Furniture vs. Dezhan HealthCare Co | UE Furniture vs. Healthcare Co |
| Hubei Forbon vs. Maoming Petro Chemical Shihua | Hubei Forbon vs. Guocheng Mining Co | Hubei Forbon vs. Ningbo Jintian Copper | Hubei Forbon vs. Rising Nonferrous Metals |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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