Correlation Between Easyhome New and Chongqing Zhifei
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By analyzing existing cross correlation between Easyhome New Retail and Chongqing Zhifei Bio, you can compare the effects of market volatilities on Easyhome New and Chongqing Zhifei 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 Chongqing Zhifei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and Chongqing Zhifei.
Diversification Opportunities for Easyhome New and Chongqing Zhifei
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Easyhome and Chongqing is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and Chongqing Zhifei Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Zhifei Bio 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 Chongqing Zhifei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Zhifei Bio has no effect on the direction of Easyhome New i.e., Easyhome New and Chongqing Zhifei go up and down completely randomly.
Pair Corralation between Easyhome New and Chongqing Zhifei
Assuming the 90 days trading horizon Easyhome New Retail is expected to generate 1.38 times more return on investment than Chongqing Zhifei. However, Easyhome New is 1.38 times more volatile than Chongqing Zhifei Bio. It trades about 0.24 of its potential returns per unit of risk. Chongqing Zhifei Bio is currently generating about -0.06 per unit of risk. If you would invest 296.00 in Easyhome New Retail on September 12, 2024 and sell it today you would earn a total of 60.00 from holding Easyhome New Retail or generate 20.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Easyhome New Retail vs. Chongqing Zhifei Bio
Performance |
| Timeline |
| Easyhome New Retail |
| Chongqing Zhifei Bio |
Easyhome New and Chongqing Zhifei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easyhome New and Chongqing Zhifei
The main advantage of trading using opposite Easyhome New and Chongqing Zhifei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, Chongqing Zhifei 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 Chongqing Zhifei will offset losses from the drop in Chongqing Zhifei'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 |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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