Correlation Between UE Furniture and Yili Chuanning
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By analyzing existing cross correlation between UE Furniture Co and Yili Chuanning Biotechnology, you can compare the effects of market volatilities on UE Furniture and Yili Chuanning 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 Yili Chuanning. Check out your portfolio center. Please also check ongoing floating volatility patterns of UE Furniture and Yili Chuanning.
Diversification Opportunities for UE Furniture and Yili Chuanning
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 603600 and Yili is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding UE Furniture Co and Yili Chuanning Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yili Chuanning Biote 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 Yili Chuanning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yili Chuanning Biote has no effect on the direction of UE Furniture i.e., UE Furniture and Yili Chuanning go up and down completely randomly.
Pair Corralation between UE Furniture and Yili Chuanning
Assuming the 90 days trading horizon UE Furniture is expected to generate 1.19 times less return on investment than Yili Chuanning. But when comparing it to its historical volatility, UE Furniture Co is 1.19 times less risky than Yili Chuanning. It trades about 0.04 of its potential returns per unit of risk. Yili Chuanning Biotechnology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 860.00 in Yili Chuanning Biotechnology on October 16, 2024 and sell it today you would earn a total of 316.00 from holding Yili Chuanning Biotechnology or generate 36.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UE Furniture Co vs. Yili Chuanning Biotechnology
Performance |
| Timeline |
| UE Furniture |
| Yili Chuanning Biote |
UE Furniture and Yili Chuanning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UE Furniture and Yili Chuanning
The main advantage of trading using opposite UE Furniture and Yili Chuanning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UE Furniture position performs unexpectedly, Yili Chuanning 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 Yili Chuanning will offset losses from the drop in Yili Chuanning's long position.| UE Furniture vs. Kuang Chi Technologies | UE Furniture vs. Beijing Bewinner Communications | UE Furniture vs. Olympic Circuit Technology | UE Furniture vs. Cabio Biotech Wuhan |
| Yili Chuanning vs. Luolai Home Textile | Yili Chuanning vs. Oppein Home Group | Yili Chuanning vs. UE Furniture Co | Yili Chuanning vs. Nanjing OLO Home |
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 Stocks Directory module to find actively traded stocks across global markets.
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