Correlation Between UE Furniture and Anhui Jianghuai
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By analyzing existing cross correlation between UE Furniture Co and Anhui Jianghuai Automobile, you can compare the effects of market volatilities on UE Furniture and Anhui Jianghuai 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 Anhui Jianghuai. Check out your portfolio center. Please also check ongoing floating volatility patterns of UE Furniture and Anhui Jianghuai.
Diversification Opportunities for UE Furniture and Anhui Jianghuai
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 603600 and Anhui is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding UE Furniture Co and Anhui Jianghuai Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Jianghuai Auto 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 Anhui Jianghuai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Jianghuai Auto has no effect on the direction of UE Furniture i.e., UE Furniture and Anhui Jianghuai go up and down completely randomly.
Pair Corralation between UE Furniture and Anhui Jianghuai
Assuming the 90 days trading horizon UE Furniture is expected to generate 4.06 times less return on investment than Anhui Jianghuai. But when comparing it to its historical volatility, UE Furniture Co is 1.48 times less risky than Anhui Jianghuai. It trades about 0.03 of its potential returns per unit of risk. Anhui Jianghuai Automobile is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,425 in Anhui Jianghuai Automobile on September 4, 2024 and sell it today you would earn a total of 2,191 from holding Anhui Jianghuai Automobile or generate 153.75% 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. Anhui Jianghuai Automobile
Performance |
| Timeline |
| UE Furniture |
| Anhui Jianghuai Auto |
UE Furniture and Anhui Jianghuai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UE Furniture and Anhui Jianghuai
The main advantage of trading using opposite UE Furniture and Anhui Jianghuai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UE Furniture position performs unexpectedly, Anhui Jianghuai 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 Anhui Jianghuai will offset losses from the drop in Anhui Jianghuai's long position.| UE Furniture vs. Nanjing Putian Telecommunications | UE Furniture vs. Kangyue Technology Co | UE Furniture vs. Shenzhen Hifuture Electric | UE Furniture vs. Tianjin Realty Development |
| Anhui Jianghuai vs. Industrial and Commercial | Anhui Jianghuai vs. China Construction Bank | Anhui Jianghuai vs. Agricultural Bank of | Anhui Jianghuai vs. Bank of China |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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