Correlation Between Hi Trend and UE Furniture
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By analyzing existing cross correlation between Hi Trend TechCo and UE Furniture Co, you can compare the effects of market volatilities on Hi Trend 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 Hi Trend with a short position of UE Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hi Trend and UE Furniture.
Diversification Opportunities for Hi Trend and UE Furniture
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 688391 and 603600 is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Hi Trend TechCo and UE Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UE Furniture and Hi Trend 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 Hi Trend TechCo 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 Hi Trend i.e., Hi Trend and UE Furniture go up and down completely randomly.
Pair Corralation between Hi Trend and UE Furniture
Assuming the 90 days trading horizon Hi Trend TechCo is expected to under-perform the UE Furniture. In addition to that, Hi Trend is 1.29 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 0.02 per unit of volatility. If you would invest 1,029 in UE Furniture Co on September 3, 2024 and sell it today you would earn a total of 141.00 from holding UE Furniture Co or generate 13.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hi Trend TechCo vs. UE Furniture Co
Performance |
| Timeline |
| Hi Trend TechCo |
| UE Furniture |
Hi Trend and UE Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hi Trend and UE Furniture
The main advantage of trading using opposite Hi Trend and UE Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hi Trend 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.| Hi Trend vs. Tongxing Environmental Protection | Hi Trend vs. Anhui Fuhuang Steel | Hi Trend vs. Guangdong Liantai Environmental | Hi Trend vs. Beijing SPC Environment |
| UE Furniture vs. Cultural Investment Holdings | UE Furniture vs. Gome Telecom Equipment | UE Furniture vs. Bus Online Co | UE Furniture vs. Holitech Technology 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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