Correlation Between Easyhome New and Nanjing Putian
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By analyzing existing cross correlation between Easyhome New Retail and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Easyhome New and Nanjing Putian 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 Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and Nanjing Putian.
Diversification Opportunities for Easyhome New and Nanjing Putian
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Easyhome and Nanjing is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and Nanjing Putian Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Putian Telec 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 Nanjing Putian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Putian Telec has no effect on the direction of Easyhome New i.e., Easyhome New and Nanjing Putian go up and down completely randomly.
Pair Corralation between Easyhome New and Nanjing Putian
Assuming the 90 days trading horizon Easyhome New Retail is expected to under-perform the Nanjing Putian. But the stock apears to be less risky and, when comparing its historical volatility, Easyhome New Retail is 1.56 times less risky than Nanjing Putian. The stock trades about -0.01 of its potential returns per unit of risk. The Nanjing Putian Telecommunications is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 344.00 in Nanjing Putian Telecommunications on August 31, 2024 and sell it today you would earn a total of 104.00 from holding Nanjing Putian Telecommunications or generate 30.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easyhome New Retail vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Easyhome New Retail |
| Nanjing Putian Telec |
Easyhome New and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easyhome New and Nanjing Putian
The main advantage of trading using opposite Easyhome New and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, Nanjing Putian 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 Nanjing Putian will offset losses from the drop in Nanjing Putian's long position.| Easyhome New vs. China State Construction | Easyhome New vs. China Merchants Shekou | Easyhome New vs. Huafa Industrial Co | Easyhome New vs. China International Capital |
| Nanjing Putian vs. Kweichow Moutai Co | Nanjing Putian vs. NAURA Technology Group | Nanjing Putian vs. APT Medical | Nanjing Putian vs. Contemporary Amperex Technology |
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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