Correlation Between Easyhome New and Guangdong Tianhe
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By analyzing existing cross correlation between Easyhome New Retail and Guangdong Tianhe Agricultural, you can compare the effects of market volatilities on Easyhome New and Guangdong Tianhe 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 Guangdong Tianhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and Guangdong Tianhe.
Diversification Opportunities for Easyhome New and Guangdong Tianhe
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Easyhome and Guangdong is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and Guangdong Tianhe Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Tianhe Agr 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 Guangdong Tianhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Tianhe Agr has no effect on the direction of Easyhome New i.e., Easyhome New and Guangdong Tianhe go up and down completely randomly.
Pair Corralation between Easyhome New and Guangdong Tianhe
Assuming the 90 days trading horizon Easyhome New Retail is expected to generate 0.99 times more return on investment than Guangdong Tianhe. However, Easyhome New Retail is 1.01 times less risky than Guangdong Tianhe. It trades about 0.01 of its potential returns per unit of risk. Guangdong Tianhe Agricultural is currently generating about -0.03 per unit of risk. If you would invest 381.00 in Easyhome New Retail on October 15, 2024 and sell it today you would lose (18.00) from holding Easyhome New Retail or give up 4.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easyhome New Retail vs. Guangdong Tianhe Agricultural
Performance |
| Timeline |
| Easyhome New Retail |
| Guangdong Tianhe Agr |
Easyhome New and Guangdong Tianhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easyhome New and Guangdong Tianhe
The main advantage of trading using opposite Easyhome New and Guangdong Tianhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, Guangdong Tianhe 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 Guangdong Tianhe will offset losses from the drop in Guangdong Tianhe's long position.| Easyhome New vs. Anhui Tongguan Copper | Easyhome New vs. Guocheng Mining Co | Easyhome New vs. Dalian Thermal Power | Easyhome New vs. Fujian Longzhou Transportation |
| Guangdong Tianhe vs. Penyao Environmental Protection | Guangdong Tianhe vs. GreenTech Environmental Co | Guangdong Tianhe vs. Zoy Home Furnishing | Guangdong Tianhe vs. Fujian Nanwang Environment |
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 CEOs Directory module to screen CEOs from public companies around the world.
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