Correlation Between UE Furniture and Chinese Universe
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By analyzing existing cross correlation between UE Furniture Co and Chinese Universe Publishing, you can compare the effects of market volatilities on UE Furniture and Chinese Universe 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 Chinese Universe. Check out your portfolio center. Please also check ongoing floating volatility patterns of UE Furniture and Chinese Universe.
Diversification Opportunities for UE Furniture and Chinese Universe
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 603600 and Chinese is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding UE Furniture Co and Chinese Universe Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Universe Pub 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 Chinese Universe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Universe Pub has no effect on the direction of UE Furniture i.e., UE Furniture and Chinese Universe go up and down completely randomly.
Pair Corralation between UE Furniture and Chinese Universe
Assuming the 90 days trading horizon UE Furniture Co is expected to generate 1.2 times more return on investment than Chinese Universe. However, UE Furniture is 1.2 times more volatile than Chinese Universe Publishing. It trades about 0.08 of its potential returns per unit of risk. Chinese Universe Publishing is currently generating about -0.11 per unit of risk. If you would invest 1,148 in UE Furniture Co on October 17, 2024 and sell it today you would earn a total of 73.00 from holding UE Furniture Co or generate 6.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UE Furniture Co vs. Chinese Universe Publishing
Performance |
| Timeline |
| UE Furniture |
| Chinese Universe Pub |
UE Furniture and Chinese Universe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UE Furniture and Chinese Universe
The main advantage of trading using opposite UE Furniture and Chinese Universe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UE Furniture position performs unexpectedly, Chinese Universe 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 Chinese Universe will offset losses from the drop in Chinese Universe'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 |
| Chinese Universe vs. Agricultural Bank of | Chinese Universe vs. Ping An Insurance | Chinese Universe vs. UE Furniture Co | Chinese Universe vs. Postal Savings Bank |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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