Correlation Between Easyhome New and Hunan Mendale
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By analyzing existing cross correlation between Easyhome New Retail and Hunan Mendale Hometextile, you can compare the effects of market volatilities on Easyhome New and Hunan Mendale 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 Hunan Mendale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and Hunan Mendale.
Diversification Opportunities for Easyhome New and Hunan Mendale
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Easyhome and Hunan is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and Hunan Mendale Hometextile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Mendale Hometextile 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 Hunan Mendale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Mendale Hometextile has no effect on the direction of Easyhome New i.e., Easyhome New and Hunan Mendale go up and down completely randomly.
Pair Corralation between Easyhome New and Hunan Mendale
Assuming the 90 days trading horizon Easyhome New Retail is expected to generate 0.89 times more return on investment than Hunan Mendale. However, Easyhome New Retail is 1.12 times less risky than Hunan Mendale. It trades about 0.05 of its potential returns per unit of risk. Hunan Mendale Hometextile is currently generating about 0.02 per unit of risk. If you would invest 273.00 in Easyhome New Retail on October 18, 2024 and sell it today you would earn a total of 81.00 from holding Easyhome New Retail or generate 29.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Easyhome New Retail vs. Hunan Mendale Hometextile
Performance |
| Timeline |
| Easyhome New Retail |
| Hunan Mendale Hometextile |
Easyhome New and Hunan Mendale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easyhome New and Hunan Mendale
The main advantage of trading using opposite Easyhome New and Hunan Mendale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, Hunan Mendale 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 Hunan Mendale will offset losses from the drop in Hunan Mendale's long position.| Easyhome New vs. Jilin Jlu Communication | Easyhome New vs. Queclink Wireless Solutions | Easyhome New vs. Fiberhome Telecommunication Technologies | Easyhome New vs. Dongfeng Automobile Co |
| Hunan Mendale vs. China Mobile Limited | Hunan Mendale vs. Songz Automobile Air | Hunan Mendale vs. State Grid InformationCommunication | Hunan Mendale vs. Dongfeng Automobile Co |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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