Correlation Between Easyhome New and Beijing Yanjing
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By analyzing existing cross correlation between Easyhome New Retail and Beijing Yanjing Brewery, you can compare the effects of market volatilities on Easyhome New and Beijing Yanjing 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 Beijing Yanjing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and Beijing Yanjing.
Diversification Opportunities for Easyhome New and Beijing Yanjing
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Easyhome and Beijing is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and Beijing Yanjing Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Yanjing Brewery 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 Beijing Yanjing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Yanjing Brewery has no effect on the direction of Easyhome New i.e., Easyhome New and Beijing Yanjing go up and down completely randomly.
Pair Corralation between Easyhome New and Beijing Yanjing
Assuming the 90 days trading horizon Easyhome New Retail is expected to generate 1.2 times more return on investment than Beijing Yanjing. However, Easyhome New is 1.2 times more volatile than Beijing Yanjing Brewery. It trades about 0.22 of its potential returns per unit of risk. Beijing Yanjing Brewery is currently generating about -0.21 per unit of risk. If you would invest 268.00 in Easyhome New Retail on August 24, 2024 and sell it today you would earn a total of 28.00 from holding Easyhome New Retail or generate 10.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easyhome New Retail vs. Beijing Yanjing Brewery
Performance |
| Timeline |
| Easyhome New Retail |
| Beijing Yanjing Brewery |
Easyhome New and Beijing Yanjing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easyhome New and Beijing Yanjing
The main advantage of trading using opposite Easyhome New and Beijing Yanjing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, Beijing Yanjing 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 Beijing Yanjing will offset losses from the drop in Beijing Yanjing's long position.| Easyhome New vs. Kweichow Moutai Co | Easyhome New vs. Contemporary Amperex Technology | Easyhome New vs. G bits Network Technology | Easyhome New vs. Beijing Roborock Technology |
| Beijing Yanjing vs. Focus Media Information | Beijing Yanjing vs. Longjian Road Bridge | Beijing Yanjing vs. Zhongshan Broad Ocean Motor | Beijing Yanjing vs. China Marine Information |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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