Correlation Between Easyhome New and Jizhong Energy
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By analyzing existing cross correlation between Easyhome New Retail and Jizhong Energy Resources, you can compare the effects of market volatilities on Easyhome New and Jizhong Energy 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 Jizhong Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and Jizhong Energy.
Diversification Opportunities for Easyhome New and Jizhong Energy
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Easyhome and Jizhong is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and Jizhong Energy Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jizhong Energy Resources 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 Jizhong Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jizhong Energy Resources has no effect on the direction of Easyhome New i.e., Easyhome New and Jizhong Energy go up and down completely randomly.
Pair Corralation between Easyhome New and Jizhong Energy
Assuming the 90 days trading horizon Easyhome New Retail is expected to under-perform the Jizhong Energy. In addition to that, Easyhome New is 2.97 times more volatile than Jizhong Energy Resources. It trades about -0.21 of its total potential returns per unit of risk. Jizhong Energy Resources is currently generating about -0.27 per unit of volatility. If you would invest 642.00 in Jizhong Energy Resources on November 7, 2024 and sell it today you would lose (39.00) from holding Jizhong Energy Resources or give up 6.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easyhome New Retail vs. Jizhong Energy Resources
Performance |
| Timeline |
| Easyhome New Retail |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Jizhong Energy Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Easyhome New and Jizhong Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easyhome New and Jizhong Energy
The main advantage of trading using opposite Easyhome New and Jizhong Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, Jizhong Energy 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 Jizhong Energy will offset losses from the drop in Jizhong Energy's long position.The idea behind Easyhome New Retail and Jizhong Energy Resources pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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