Correlation Between Easyhome New and Liuzhou Chemical
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By analyzing existing cross correlation between Easyhome New Retail and Liuzhou Chemical Industry, you can compare the effects of market volatilities on Easyhome New and Liuzhou Chemical 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 Liuzhou Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and Liuzhou Chemical.
Diversification Opportunities for Easyhome New and Liuzhou Chemical
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Easyhome and Liuzhou is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and Liuzhou Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liuzhou Chemical Industry 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 Liuzhou Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liuzhou Chemical Industry has no effect on the direction of Easyhome New i.e., Easyhome New and Liuzhou Chemical go up and down completely randomly.
Pair Corralation between Easyhome New and Liuzhou Chemical
Assuming the 90 days trading horizon Easyhome New Retail is expected to generate 1.02 times more return on investment than Liuzhou Chemical. However, Easyhome New is 1.02 times more volatile than Liuzhou Chemical Industry. It trades about 0.02 of its potential returns per unit of risk. Liuzhou Chemical Industry is currently generating about 0.0 per unit of risk. If you would invest 378.00 in Easyhome New Retail on October 11, 2024 and sell it today you would earn a total of 25.00 from holding Easyhome New Retail or generate 6.61% 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. Liuzhou Chemical Industry
Performance |
| Timeline |
| Easyhome New Retail |
| Liuzhou Chemical Industry |
Easyhome New and Liuzhou Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easyhome New and Liuzhou Chemical
The main advantage of trading using opposite Easyhome New and Liuzhou Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, Liuzhou Chemical 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 Liuzhou Chemical will offset losses from the drop in Liuzhou Chemical'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 |
| Liuzhou Chemical vs. AUPU Home Style | Liuzhou Chemical vs. Oppein Home Group | Liuzhou Chemical vs. Easyhome New Retail | Liuzhou Chemical vs. Ziel Home Furnishing |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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