Correlation Between Easyhome New and Runjian Communication
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By analyzing existing cross correlation between Easyhome New Retail and Runjian Communication Co, you can compare the effects of market volatilities on Easyhome New and Runjian Communication 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 Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and Runjian Communication.
Diversification Opportunities for Easyhome New and Runjian Communication
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Easyhome and Runjian is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication 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 Runjian Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Runjian Communication has no effect on the direction of Easyhome New i.e., Easyhome New and Runjian Communication go up and down completely randomly.
Pair Corralation between Easyhome New and Runjian Communication
Assuming the 90 days trading horizon Easyhome New Retail is expected to generate 2.14 times more return on investment than Runjian Communication. However, Easyhome New is 2.14 times more volatile than Runjian Communication Co. It trades about 0.22 of its potential returns per unit of risk. Runjian Communication Co is currently generating about 0.21 per unit of risk. If you would invest 291.00 in Easyhome New Retail on September 27, 2024 and sell it today you would earn a total of 89.00 from holding Easyhome New Retail or generate 30.58% 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. Runjian Communication Co
Performance |
| Timeline |
| Easyhome New Retail |
| Runjian Communication |
Easyhome New and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easyhome New and Runjian Communication
The main advantage of trading using opposite Easyhome New and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, Runjian Communication 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 Runjian Communication will offset losses from the drop in Runjian Communication's long position.| Easyhome New vs. Peoples Insurance of | Easyhome New vs. Shenzhen Glory Medical | Easyhome New vs. China Aluminum International | Easyhome New vs. Shanghai Jinfeng Wine |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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