Correlation Between Easyhome New and Shandong Homey
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By analyzing existing cross correlation between Easyhome New Retail and Shandong Homey Aquatic, you can compare the effects of market volatilities on Easyhome New and Shandong Homey 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 Shandong Homey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and Shandong Homey.
Diversification Opportunities for Easyhome New and Shandong Homey
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Easyhome and Shandong is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and Shandong Homey Aquatic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Homey Aquatic 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 Shandong Homey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Homey Aquatic has no effect on the direction of Easyhome New i.e., Easyhome New and Shandong Homey go up and down completely randomly.
Pair Corralation between Easyhome New and Shandong Homey
Assuming the 90 days trading horizon Easyhome New Retail is expected to generate 0.95 times more return on investment than Shandong Homey. However, Easyhome New Retail is 1.05 times less risky than Shandong Homey. It trades about 0.03 of its potential returns per unit of risk. Shandong Homey Aquatic is currently generating about 0.02 per unit of risk. If you would invest 364.00 in Easyhome New Retail on September 13, 2024 and sell it today you would earn a total of 67.00 from holding Easyhome New Retail or generate 18.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easyhome New Retail vs. Shandong Homey Aquatic
Performance |
| Timeline |
| Easyhome New Retail |
| Shandong Homey Aquatic |
Easyhome New and Shandong Homey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easyhome New and Shandong Homey
The main advantage of trading using opposite Easyhome New and Shandong Homey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, Shandong Homey 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 Shandong Homey will offset losses from the drop in Shandong Homey's long position.| Easyhome New vs. Ming Yang Smart | Easyhome New vs. 159681 | Easyhome New vs. 159005 | Easyhome New vs. Loctek Ergonomic Technology |
| Shandong Homey vs. Zhongrun Resources Investment | Shandong Homey vs. Shenzhen Centralcon Investment | Shandong Homey vs. Shaanxi Energy Investment | Shandong Homey vs. Zhongtong Guomai Communication |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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