Correlation Between Easyhome New and Gan Yuan
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By analyzing existing cross correlation between Easyhome New Retail and Gan Yuan Foods, you can compare the effects of market volatilities on Easyhome New and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and Gan Yuan.
Diversification Opportunities for Easyhome New and Gan Yuan
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Easyhome and Gan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Easyhome New i.e., Easyhome New and Gan Yuan go up and down completely randomly.
Pair Corralation between Easyhome New and Gan Yuan
Assuming the 90 days trading horizon Easyhome New is expected to generate 3.86 times less return on investment than Gan Yuan. But when comparing it to its historical volatility, Easyhome New Retail is 1.09 times less risky than Gan Yuan. It trades about 0.01 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 6,515 in Gan Yuan Foods on September 12, 2024 and sell it today you would earn a total of 1,318 from holding Gan Yuan Foods or generate 20.23% 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. Gan Yuan Foods
Performance |
Timeline |
Easyhome New Retail |
Gan Yuan Foods |
Easyhome New and Gan Yuan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Easyhome New and Gan Yuan
The main advantage of trading using opposite Easyhome New and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan'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 |
Gan Yuan vs. Maxvision Technology Corp | Gan Yuan vs. Eastroc Beverage Group | Gan Yuan vs. Changchun Faway Automobile | Gan Yuan vs. ROPEOK Technology Group |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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