Correlation Between Easyhome New and Wuhan Yangtze
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By analyzing existing cross correlation between Easyhome New Retail and Wuhan Yangtze Communication, you can compare the effects of market volatilities on Easyhome New and Wuhan Yangtze 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 Wuhan Yangtze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and Wuhan Yangtze.
Diversification Opportunities for Easyhome New and Wuhan Yangtze
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Easyhome and Wuhan is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and Wuhan Yangtze Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Yangtze Commun 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 Wuhan Yangtze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Yangtze Commun has no effect on the direction of Easyhome New i.e., Easyhome New and Wuhan Yangtze go up and down completely randomly.
Pair Corralation between Easyhome New and Wuhan Yangtze
Assuming the 90 days trading horizon Easyhome New is expected to generate 2.34 times less return on investment than Wuhan Yangtze. But when comparing it to its historical volatility, Easyhome New Retail is 1.33 times less risky than Wuhan Yangtze. It trades about 0.02 of its potential returns per unit of risk. Wuhan Yangtze Communication is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,676 in Wuhan Yangtze Communication on October 11, 2024 and sell it today you would earn a total of 453.00 from holding Wuhan Yangtze Communication or generate 27.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easyhome New Retail vs. Wuhan Yangtze Communication
Performance |
| Timeline |
| Easyhome New Retail |
| Wuhan Yangtze Commun |
Easyhome New and Wuhan Yangtze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easyhome New and Wuhan Yangtze
The main advantage of trading using opposite Easyhome New and Wuhan Yangtze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, Wuhan Yangtze 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 Wuhan Yangtze will offset losses from the drop in Wuhan Yangtze's long position.| Easyhome New vs. Maoming Petro Chemical Shihua | Easyhome New vs. Zhejiang JIULI Hi tech | Easyhome New vs. Kuang Chi Technologies | Easyhome New vs. Miracll Chemicals Co |
| Wuhan Yangtze vs. Allwin Telecommunication Co | Wuhan Yangtze vs. Telling Telecommunication Holding | Wuhan Yangtze vs. Easyhome New Retail | Wuhan Yangtze vs. SUNSEA Telecommunications Co |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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