Correlation Between UE Furniture and China Railway
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By analyzing existing cross correlation between UE Furniture Co and China Railway Construction, you can compare the effects of market volatilities on UE Furniture and China Railway 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 China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of UE Furniture and China Railway.
Diversification Opportunities for UE Furniture and China Railway
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 603600 and China is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding UE Furniture Co and China Railway Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Railway Constr 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 China Railway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Railway Constr has no effect on the direction of UE Furniture i.e., UE Furniture and China Railway go up and down completely randomly.
Pair Corralation between UE Furniture and China Railway
Assuming the 90 days trading horizon UE Furniture is expected to generate 6.28 times less return on investment than China Railway. But when comparing it to its historical volatility, UE Furniture Co is 1.59 times less risky than China Railway. It trades about 0.01 of its potential returns per unit of risk. China Railway Construction is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 891.00 in China Railway Construction on August 29, 2024 and sell it today you would earn a total of 22.00 from holding China Railway Construction or generate 2.47% 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. China Railway Construction
Performance |
| Timeline |
| UE Furniture |
| China Railway Constr |
UE Furniture and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UE Furniture and China Railway
The main advantage of trading using opposite UE Furniture and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UE Furniture position performs unexpectedly, China Railway 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 China Railway will offset losses from the drop in China Railway's long position.| UE Furniture vs. Zhejiang Yayi Metal | UE Furniture vs. Tieling Newcity Investment | UE Furniture vs. Shandong Hongchuang Aluminum | UE Furniture vs. Western Metal Materials |
| China Railway vs. Guangxi Wuzhou Communications | China Railway vs. UE Furniture Co | China Railway vs. Dr Peng Telecom | China Railway vs. Oppein Home Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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