Correlation Between Easyhome New and Longxing Chemical
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By analyzing existing cross correlation between Easyhome New Retail and Longxing Chemical Stock, you can compare the effects of market volatilities on Easyhome New and Longxing Chemical 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 Longxing Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and Longxing Chemical.
Diversification Opportunities for Easyhome New and Longxing Chemical
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Easyhome and Longxing is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and Longxing Chemical Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longxing Chemical Stock 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 Longxing Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longxing Chemical Stock has no effect on the direction of Easyhome New i.e., Easyhome New and Longxing Chemical go up and down completely randomly.
Pair Corralation between Easyhome New and Longxing Chemical
Assuming the 90 days trading horizon Easyhome New Retail is expected to generate 1.67 times more return on investment than Longxing Chemical. However, Easyhome New is 1.67 times more volatile than Longxing Chemical Stock. It trades about 0.12 of its potential returns per unit of risk. Longxing Chemical Stock is currently generating about -0.01 per unit of risk. If you would invest 356.00 in Easyhome New Retail on October 11, 2024 and sell it today you would earn a total of 47.00 from holding Easyhome New Retail or generate 13.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easyhome New Retail vs. Longxing Chemical Stock
Performance |
| Timeline |
| Easyhome New Retail |
| Longxing Chemical Stock |
Easyhome New and Longxing Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easyhome New and Longxing Chemical
The main advantage of trading using opposite Easyhome New and Longxing Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, Longxing Chemical 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 Longxing Chemical will offset losses from the drop in Longxing Chemical's long position.| Easyhome New vs. Maoming Petro Chemical Shihua | Easyhome New vs. Zhejiang JIULI Hi tech | Easyhome New vs. Kuang Chi Technologies | Easyhome New vs. Miracll Chemicals Co |
| Longxing Chemical vs. Puya Semiconductor Shanghai | Longxing Chemical vs. Giantec Semiconductor Corp | Longxing Chemical vs. Allwin Telecommunication Co | Longxing Chemical vs. Nexchip Semiconductor Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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