Correlation Between Easyhome New and Hua Xia
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By analyzing existing cross correlation between Easyhome New Retail and Hua Xia Bank, you can compare the effects of market volatilities on Easyhome New and Hua Xia 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 Hua Xia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and Hua Xia.
Diversification Opportunities for Easyhome New and Hua Xia
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Easyhome and Hua is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and Hua Xia Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hua Xia Bank 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 Hua Xia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hua Xia Bank has no effect on the direction of Easyhome New i.e., Easyhome New and Hua Xia go up and down completely randomly.
Pair Corralation between Easyhome New and Hua Xia
Assuming the 90 days trading horizon Easyhome New Retail is expected to under-perform the Hua Xia. In addition to that, Easyhome New is 4.09 times more volatile than Hua Xia Bank. It trades about -0.12 of its total potential returns per unit of risk. Hua Xia Bank is currently generating about -0.12 per unit of volatility. If you would invest 778.00 in Hua Xia Bank on October 20, 2024 and sell it today you would lose (24.00) from holding Hua Xia Bank or give up 3.08% 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. Hua Xia Bank
Performance |
| Timeline |
| Easyhome New Retail |
| Hua Xia Bank |
Easyhome New and Hua Xia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easyhome New and Hua Xia
The main advantage of trading using opposite Easyhome New and Hua Xia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, Hua Xia 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 Hua Xia will offset losses from the drop in Hua Xia's long position.| Easyhome New vs. Ningbo Construction Co | Easyhome New vs. Jinxiandai Information Industry | Easyhome New vs. Zhongfu Information | Easyhome New vs. Eastroc Beverage Group |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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