Correlation Between Easyhome New and China Longyuan
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By analyzing existing cross correlation between Easyhome New Retail and China Longyuan Power, you can compare the effects of market volatilities on Easyhome New and China Longyuan 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 China Longyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and China Longyuan.
Diversification Opportunities for Easyhome New and China Longyuan
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Easyhome and China is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and China Longyuan Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Longyuan Power 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 China Longyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Longyuan Power has no effect on the direction of Easyhome New i.e., Easyhome New and China Longyuan go up and down completely randomly.
Pair Corralation between Easyhome New and China Longyuan
Assuming the 90 days trading horizon Easyhome New Retail is expected to generate 1.41 times more return on investment than China Longyuan. However, Easyhome New is 1.41 times more volatile than China Longyuan Power. It trades about 0.0 of its potential returns per unit of risk. China Longyuan Power is currently generating about -0.02 per unit of risk. If you would invest 400.00 in Easyhome New Retail on November 5, 2024 and sell it today you would lose (57.00) from holding Easyhome New Retail or give up 14.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easyhome New Retail vs. China Longyuan Power
Performance |
| Timeline |
| Easyhome New Retail |
| China Longyuan Power |
Easyhome New and China Longyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easyhome New and China Longyuan
The main advantage of trading using opposite Easyhome New and China Longyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, China Longyuan 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 China Longyuan will offset losses from the drop in China Longyuan's long position.| Easyhome New vs. Nantong Haixing Electronics | Easyhome New vs. Newcapec Electronics Co | Easyhome New vs. Dongnan Electronics Co | Easyhome New vs. Weihai Honglin Electronic |
| China Longyuan vs. Easyhome New Retail | China Longyuan vs. Youngy Health Co | China Longyuan vs. Jiangsu Yanghe Brewery | China Longyuan vs. Impulse Qingdao Health |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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