Correlation Between Easyhome New and Lonkey Industrial
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By analyzing existing cross correlation between Easyhome New Retail and Lonkey Industrial Co, you can compare the effects of market volatilities on Easyhome New and Lonkey Industrial 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 Easyhome New with a short position of Lonkey Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and Lonkey Industrial.
Diversification Opportunities for Easyhome New and Lonkey Industrial
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Easyhome and Lonkey is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and Lonkey Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lonkey Industrial and Easyhome New 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 Easyhome New Retail are associated (or correlated) with Lonkey Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lonkey Industrial has no effect on the direction of Easyhome New i.e., Easyhome New and Lonkey Industrial go up and down completely randomly.
Pair Corralation between Easyhome New and Lonkey Industrial
Assuming the 90 days trading horizon Easyhome New Retail is expected to generate 1.01 times more return on investment than Lonkey Industrial. However, Easyhome New is 1.01 times more volatile than Lonkey Industrial Co. It trades about 0.01 of its potential returns per unit of risk. Lonkey Industrial Co is currently generating about 0.0 per unit of risk. If you would invest 368.00 in Easyhome New Retail on September 12, 2024 and sell it today you would lose (12.00) from holding Easyhome New Retail or give up 3.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easyhome New Retail vs. Lonkey Industrial Co
Performance |
| Timeline |
| Easyhome New Retail |
| Lonkey Industrial |
Easyhome New and Lonkey Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easyhome New and Lonkey Industrial
The main advantage of trading using opposite Easyhome New and Lonkey Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, Lonkey Industrial 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 Lonkey Industrial will offset losses from the drop in Lonkey Industrial's long position.| Easyhome New vs. Lutian Machinery Co | Easyhome New vs. PetroChina Co Ltd | Easyhome New vs. Bank of China | Easyhome New vs. Gansu Jiu Steel |
| Lonkey Industrial vs. China Petroleum Chemical | Lonkey Industrial vs. PetroChina Co Ltd | Lonkey Industrial vs. China State Construction | Lonkey Industrial vs. China Railway Group |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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