Correlation Between Easyhome New and Centre Testing
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By analyzing existing cross correlation between Easyhome New Retail and Centre Testing Intl, you can compare the effects of market volatilities on Easyhome New and Centre Testing 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 Centre Testing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and Centre Testing.
Diversification Opportunities for Easyhome New and Centre Testing
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Easyhome and Centre is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and Centre Testing Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centre Testing Intl 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 Centre Testing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centre Testing Intl has no effect on the direction of Easyhome New i.e., Easyhome New and Centre Testing go up and down completely randomly.
Pair Corralation between Easyhome New and Centre Testing
Assuming the 90 days trading horizon Easyhome New Retail is expected to generate 0.91 times more return on investment than Centre Testing. However, Easyhome New Retail is 1.1 times less risky than Centre Testing. It trades about 0.01 of its potential returns per unit of risk. Centre Testing Intl is currently generating about -0.03 per unit of risk. If you would invest 368.00 in Easyhome New Retail on September 12, 2024 and sell it today you would lose (12.00) from holding Easyhome New Retail or give up 3.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easyhome New Retail vs. Centre Testing Intl
Performance |
| Timeline |
| Easyhome New Retail |
| Centre Testing Intl |
Easyhome New and Centre Testing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easyhome New and Centre Testing
The main advantage of trading using opposite Easyhome New and Centre Testing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, Centre Testing 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 Centre Testing will offset losses from the drop in Centre Testing'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 |
| Centre Testing vs. Easyhome New Retail | Centre Testing vs. Tongling Nonferrous Metals | Centre Testing vs. CITIC Metal Co | Centre Testing vs. Shanghai Shuixing Home |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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