Correlation Between UE Furniture and Changchun BCHT
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By analyzing existing cross correlation between UE Furniture Co and Changchun BCHT Biotechnology, you can compare the effects of market volatilities on UE Furniture and Changchun BCHT 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 Changchun BCHT. Check out your portfolio center. Please also check ongoing floating volatility patterns of UE Furniture and Changchun BCHT.
Diversification Opportunities for UE Furniture and Changchun BCHT
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 603600 and Changchun is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding UE Furniture Co and Changchun BCHT Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun BCHT 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 Changchun BCHT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun BCHT Biote has no effect on the direction of UE Furniture i.e., UE Furniture and Changchun BCHT go up and down completely randomly.
Pair Corralation between UE Furniture and Changchun BCHT
Assuming the 90 days trading horizon UE Furniture Co is expected to generate 0.86 times more return on investment than Changchun BCHT. However, UE Furniture Co is 1.16 times less risky than Changchun BCHT. It trades about 0.02 of its potential returns per unit of risk. Changchun BCHT Biotechnology is currently generating about -0.07 per unit of risk. If you would invest 1,046 in UE Furniture Co on August 27, 2024 and sell it today you would earn a total of 75.00 from holding UE Furniture Co or generate 7.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UE Furniture Co vs. Changchun BCHT Biotechnology
Performance |
| Timeline |
| UE Furniture |
| Changchun BCHT Biote |
UE Furniture and Changchun BCHT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UE Furniture and Changchun BCHT
The main advantage of trading using opposite UE Furniture and Changchun BCHT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UE Furniture position performs unexpectedly, Changchun BCHT 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 Changchun BCHT will offset losses from the drop in Changchun BCHT's long position.| UE Furniture vs. Kweichow Moutai Co | UE Furniture vs. NAURA Technology Group | UE Furniture vs. APT Medical | UE Furniture vs. Shenzhen Mindray Bio Medical |
| Changchun BCHT vs. Beijing Jiaman Dress | Changchun BCHT vs. Hunan Investment Group | Changchun BCHT vs. Zoje Resources Investment | Changchun BCHT vs. Guangzhou Haige Communications |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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