Correlation Between UE Furniture and Suzhou UIGreen
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By analyzing existing cross correlation between UE Furniture Co and Suzhou UIGreen Micro, you can compare the effects of market volatilities on UE Furniture and Suzhou UIGreen 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 Suzhou UIGreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of UE Furniture and Suzhou UIGreen.
Diversification Opportunities for UE Furniture and Suzhou UIGreen
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 603600 and Suzhou is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding UE Furniture Co and Suzhou UIGreen Micro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou UIGreen Micro 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 Suzhou UIGreen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou UIGreen Micro has no effect on the direction of UE Furniture i.e., UE Furniture and Suzhou UIGreen go up and down completely randomly.
Pair Corralation between UE Furniture and Suzhou UIGreen
Assuming the 90 days trading horizon UE Furniture Co is expected to generate 0.54 times more return on investment than Suzhou UIGreen. However, UE Furniture Co is 1.84 times less risky than Suzhou UIGreen. It trades about 0.06 of its potential returns per unit of risk. Suzhou UIGreen Micro is currently generating about -0.06 per unit of risk. If you would invest 1,178 in UE Furniture Co on September 13, 2024 and sell it today you would earn a total of 22.00 from holding UE Furniture Co or generate 1.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
UE Furniture Co vs. Suzhou UIGreen Micro
Performance |
| Timeline |
| UE Furniture |
| Suzhou UIGreen Micro |
UE Furniture and Suzhou UIGreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UE Furniture and Suzhou UIGreen
The main advantage of trading using opposite UE Furniture and Suzhou UIGreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UE Furniture position performs unexpectedly, Suzhou UIGreen 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 Suzhou UIGreen will offset losses from the drop in Suzhou UIGreen's long position.| UE Furniture vs. Industrial and Commercial | UE Furniture vs. China Construction Bank | UE Furniture vs. Agricultural Bank of | UE Furniture vs. Bank of China |
| Suzhou UIGreen vs. Youngy Health Co | Suzhou UIGreen vs. Mingchen Health Co | Suzhou UIGreen vs. Songz Automobile Air | Suzhou UIGreen vs. Jiangsu Xinri E Vehicle |
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 Stocks Directory module to find actively traded stocks across global markets.
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