Correlation Between Guangzhou Dongfang and Easyhome New
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By analyzing existing cross correlation between Guangzhou Dongfang Hotel and Easyhome New Retail, you can compare the effects of market volatilities on Guangzhou Dongfang and Easyhome New 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 Guangzhou Dongfang with a short position of Easyhome New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Dongfang and Easyhome New.
Diversification Opportunities for Guangzhou Dongfang and Easyhome New
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Easyhome is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Dongfang Hotel and Easyhome New Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Easyhome New Retail and Guangzhou Dongfang 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 Guangzhou Dongfang Hotel are associated (or correlated) with Easyhome New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Easyhome New Retail has no effect on the direction of Guangzhou Dongfang i.e., Guangzhou Dongfang and Easyhome New go up and down completely randomly.
Pair Corralation between Guangzhou Dongfang and Easyhome New
Assuming the 90 days trading horizon Guangzhou Dongfang Hotel is expected to generate 1.37 times more return on investment than Easyhome New. However, Guangzhou Dongfang is 1.37 times more volatile than Easyhome New Retail. It trades about 0.04 of its potential returns per unit of risk. Easyhome New Retail is currently generating about 0.0 per unit of risk. If you would invest 853.00 in Guangzhou Dongfang Hotel on September 4, 2024 and sell it today you would earn a total of 205.00 from holding Guangzhou Dongfang Hotel or generate 24.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Dongfang Hotel vs. Easyhome New Retail
Performance |
| Timeline |
| Guangzhou Dongfang Hotel |
| Easyhome New Retail |
Guangzhou Dongfang and Easyhome New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Dongfang and Easyhome New
The main advantage of trading using opposite Guangzhou Dongfang and Easyhome New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Dongfang position performs unexpectedly, Easyhome New 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 Easyhome New will offset losses from the drop in Easyhome New's long position.| Guangzhou Dongfang vs. Biwin Storage Technology | Guangzhou Dongfang vs. PetroChina Co Ltd | Guangzhou Dongfang vs. Industrial and Commercial | Guangzhou Dongfang vs. China Construction Bank |
| Easyhome New vs. Southern PublishingMedia Co | Easyhome New vs. Zhejiang Publishing Media | Easyhome New vs. Guangzhou Dongfang Hotel | Easyhome New vs. Duzhe Publishing Media |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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