Correlation Between Cabio Biotech and UE Furniture
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By analyzing existing cross correlation between Cabio Biotech Wuhan and UE Furniture Co, you can compare the effects of market volatilities on Cabio Biotech and UE Furniture 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 Cabio Biotech with a short position of UE Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cabio Biotech and UE Furniture.
Diversification Opportunities for Cabio Biotech and UE Furniture
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cabio and 603600 is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Cabio Biotech Wuhan and UE Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UE Furniture and Cabio Biotech 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 Cabio Biotech Wuhan are associated (or correlated) with UE Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UE Furniture has no effect on the direction of Cabio Biotech i.e., Cabio Biotech and UE Furniture go up and down completely randomly.
Pair Corralation between Cabio Biotech and UE Furniture
Assuming the 90 days trading horizon Cabio Biotech Wuhan is expected to under-perform the UE Furniture. In addition to that, Cabio Biotech is 1.33 times more volatile than UE Furniture Co. It trades about -0.02 of its total potential returns per unit of risk. UE Furniture Co is currently generating about 0.03 per unit of volatility. If you would invest 1,018 in UE Furniture Co on October 30, 2024 and sell it today you would earn a total of 267.00 from holding UE Furniture Co or generate 26.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cabio Biotech Wuhan vs. UE Furniture Co
Performance |
| Timeline |
| Cabio Biotech Wuhan |
| UE Furniture |
Cabio Biotech and UE Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cabio Biotech and UE Furniture
The main advantage of trading using opposite Cabio Biotech and UE Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cabio Biotech position performs unexpectedly, UE Furniture 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 UE Furniture will offset losses from the drop in UE Furniture's long position.| Cabio Biotech vs. Railway Signal Communication | Cabio Biotech vs. BizConf Telecom Co | Cabio Biotech vs. Dongfeng Automobile Co | Cabio Biotech vs. Allwin Telecommunication Co |
| UE Furniture vs. Touchstone International Medical | UE Furniture vs. Lotus Health Group | UE Furniture vs. Dezhan HealthCare Co | UE Furniture vs. Healthcare Co |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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