Correlation Between Easyhome New and Jinhe Biotechnology
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By analyzing existing cross correlation between Easyhome New Retail and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Easyhome New and Jinhe Biotechnology 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 Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and Jinhe Biotechnology.
Diversification Opportunities for Easyhome New and Jinhe Biotechnology
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Easyhome and Jinhe is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and Jinhe Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhe Biotechnology 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 Jinhe Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhe Biotechnology has no effect on the direction of Easyhome New i.e., Easyhome New and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Easyhome New and Jinhe Biotechnology
Assuming the 90 days trading horizon Easyhome New Retail is expected to generate 1.45 times more return on investment than Jinhe Biotechnology. However, Easyhome New is 1.45 times more volatile than Jinhe Biotechnology Co. It trades about 0.11 of its potential returns per unit of risk. Jinhe Biotechnology Co is currently generating about 0.1 per unit of risk. If you would invest 256.00 in Easyhome New Retail on September 12, 2024 and sell it today you would earn a total of 100.00 from holding Easyhome New Retail or generate 39.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easyhome New Retail vs. Jinhe Biotechnology Co
Performance |
| Timeline |
| Easyhome New Retail |
| Jinhe Biotechnology |
Easyhome New and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easyhome New and Jinhe Biotechnology
The main advantage of trading using opposite Easyhome New and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, Jinhe Biotechnology 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 Jinhe Biotechnology will offset losses from the drop in Jinhe Biotechnology's long position.| Easyhome New vs. Lutian Machinery Co | Easyhome New vs. PetroChina Co Ltd | Easyhome New vs. Bank of China | Easyhome New vs. Gansu Jiu Steel |
| Jinhe Biotechnology vs. Cultural Investment Holdings | Jinhe Biotechnology vs. Gome Telecom Equipment | Jinhe Biotechnology vs. Holitech Technology Co | Jinhe Biotechnology vs. Zotye 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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