Correlation Between UE Furniture and Kweichow Moutai
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By analyzing existing cross correlation between UE Furniture Co and Kweichow Moutai Co, you can compare the effects of market volatilities on UE Furniture and Kweichow Moutai 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 Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of UE Furniture and Kweichow Moutai.
Diversification Opportunities for UE Furniture and Kweichow Moutai
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 603600 and Kweichow is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding UE Furniture Co and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai 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 Kweichow Moutai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kweichow Moutai has no effect on the direction of UE Furniture i.e., UE Furniture and Kweichow Moutai go up and down completely randomly.
Pair Corralation between UE Furniture and Kweichow Moutai
Assuming the 90 days trading horizon UE Furniture Co is expected to generate 3.72 times more return on investment than Kweichow Moutai. However, UE Furniture is 3.72 times more volatile than Kweichow Moutai Co. It trades about 0.19 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.02 per unit of risk. If you would invest 1,161 in UE Furniture Co on November 5, 2024 and sell it today you would earn a total of 124.00 from holding UE Furniture Co or generate 10.68% 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. Kweichow Moutai Co
Performance |
| Timeline |
| UE Furniture |
| Kweichow Moutai |
UE Furniture and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UE Furniture and Kweichow Moutai
The main advantage of trading using opposite UE Furniture and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UE Furniture position performs unexpectedly, Kweichow Moutai 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 Kweichow Moutai will offset losses from the drop in Kweichow Moutai's long position.| UE Furniture vs. China Life Insurance | UE Furniture vs. Agricultural Bank of | UE Furniture vs. Zoje Resources Investment | UE Furniture vs. Nuode Investment Co |
| Kweichow Moutai vs. Anji Foodstuff Co | Kweichow Moutai vs. JuneYao Dairy Co | Kweichow Moutai vs. Guizhou Chanhen Chemical | Kweichow Moutai vs. Xinxiang Chemical Fiber |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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