Correlation Between Suzhou Mingzhi and UE Furniture
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By analyzing existing cross correlation between Suzhou Mingzhi Technology and UE Furniture Co, you can compare the effects of market volatilities on Suzhou Mingzhi 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 Suzhou Mingzhi with a short position of UE Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Mingzhi and UE Furniture.
Diversification Opportunities for Suzhou Mingzhi and UE Furniture
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Suzhou and 603600 is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Mingzhi Technology and UE Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UE Furniture and Suzhou Mingzhi 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 Suzhou Mingzhi Technology 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 Suzhou Mingzhi i.e., Suzhou Mingzhi and UE Furniture go up and down completely randomly.
Pair Corralation between Suzhou Mingzhi and UE Furniture
Assuming the 90 days trading horizon Suzhou Mingzhi Technology is expected to generate 2.16 times more return on investment than UE Furniture. However, Suzhou Mingzhi is 2.16 times more volatile than UE Furniture Co. It trades about 0.03 of its potential returns per unit of risk. UE Furniture Co is currently generating about -0.2 per unit of risk. If you would invest 1,795 in Suzhou Mingzhi Technology on August 29, 2024 and sell it today you would earn a total of 15.00 from holding Suzhou Mingzhi Technology or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Mingzhi Technology vs. UE Furniture Co
Performance |
| Timeline |
| Suzhou Mingzhi Technology |
| UE Furniture |
Suzhou Mingzhi and UE Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Mingzhi and UE Furniture
The main advantage of trading using opposite Suzhou Mingzhi and UE Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Mingzhi 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.| Suzhou Mingzhi vs. Zhejiang Construction Investment | Suzhou Mingzhi vs. Hunan Tyen Machinery | Suzhou Mingzhi vs. Tieling Newcity Investment | Suzhou Mingzhi vs. Tengda Construction Group |
| UE Furniture vs. Zhejiang Yayi Metal | UE Furniture vs. Tieling Newcity Investment | UE Furniture vs. Shandong Hongchuang Aluminum | UE Furniture vs. Western Metal Materials |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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