Correlation Between Easyhome New and HeNan Splendor
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By analyzing existing cross correlation between Easyhome New Retail and HeNan Splendor Science, you can compare the effects of market volatilities on Easyhome New and HeNan Splendor 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 HeNan Splendor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and HeNan Splendor.
Diversification Opportunities for Easyhome New and HeNan Splendor
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Easyhome and HeNan is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and HeNan Splendor Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeNan Splendor Science 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 HeNan Splendor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeNan Splendor Science has no effect on the direction of Easyhome New i.e., Easyhome New and HeNan Splendor go up and down completely randomly.
Pair Corralation between Easyhome New and HeNan Splendor
Assuming the 90 days trading horizon Easyhome New Retail is expected to under-perform the HeNan Splendor. In addition to that, Easyhome New is 1.61 times more volatile than HeNan Splendor Science. It trades about -0.23 of its total potential returns per unit of risk. HeNan Splendor Science is currently generating about -0.11 per unit of volatility. If you would invest 1,006 in HeNan Splendor Science on October 18, 2024 and sell it today you would lose (81.00) from holding HeNan Splendor Science or give up 8.05% 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. HeNan Splendor Science
Performance |
| Timeline |
| Easyhome New Retail |
| HeNan Splendor Science |
Easyhome New and HeNan Splendor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easyhome New and HeNan Splendor
The main advantage of trading using opposite Easyhome New and HeNan Splendor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, HeNan Splendor 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 HeNan Splendor will offset losses from the drop in HeNan Splendor's long position.| Easyhome New vs. Sino Platinum Metals Co | Easyhome New vs. Anhui Transport Consulting | Easyhome New vs. Qingdao Choho Industrial | Easyhome New vs. Rising Nonferrous Metals |
| HeNan Splendor vs. Beijing Kaiwen Education | HeNan Splendor vs. Sinocat Environmental Technology | HeNan Splendor vs. Guangdong Liantai Environmental | HeNan Splendor vs. Penyao Environmental Protection |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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