Correlation Between Easyhome New and Xinjiang Communications
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By analyzing existing cross correlation between Easyhome New Retail and Xinjiang Communications Construction, you can compare the effects of market volatilities on Easyhome New and Xinjiang Communications 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 Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and Xinjiang Communications.
Diversification Opportunities for Easyhome New and Xinjiang Communications
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Easyhome and Xinjiang is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications 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 Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Easyhome New i.e., Easyhome New and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Easyhome New and Xinjiang Communications
Assuming the 90 days trading horizon Easyhome New Retail is expected to generate 1.13 times more return on investment than Xinjiang Communications. However, Easyhome New is 1.13 times more volatile than Xinjiang Communications Construction. It trades about 0.13 of its potential returns per unit of risk. Xinjiang Communications Construction is currently generating about 0.07 per unit of risk. If you would invest 240.00 in Easyhome New Retail on September 29, 2024 and sell it today you would earn a total of 149.00 from holding Easyhome New Retail or generate 62.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easyhome New Retail vs. Xinjiang Communications Constr
Performance |
| Timeline |
| Easyhome New Retail |
| Xinjiang Communications |
Easyhome New and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easyhome New and Xinjiang Communications
The main advantage of trading using opposite Easyhome New and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, Xinjiang Communications 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 Xinjiang Communications will offset losses from the drop in Xinjiang Communications' long position.| Easyhome New vs. Guangzhou Ruoyuchen Information | Easyhome New vs. China Nonferrous Metal | Easyhome New vs. Talkweb Information System | Easyhome New vs. Hygon Information Technology |
| Xinjiang Communications vs. Agricultural Bank of | Xinjiang Communications vs. Industrial and Commercial | Xinjiang Communications vs. Bank of China | Xinjiang Communications vs. China Construction Bank |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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