Correlation Between Easyhome New and Caihong Display
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By analyzing existing cross correlation between Easyhome New Retail and Caihong Display Devices, you can compare the effects of market volatilities on Easyhome New and Caihong Display 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 Caihong Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and Caihong Display.
Diversification Opportunities for Easyhome New and Caihong Display
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Easyhome and Caihong is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and Caihong Display Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caihong Display Devices 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 Caihong Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caihong Display Devices has no effect on the direction of Easyhome New i.e., Easyhome New and Caihong Display go up and down completely randomly.
Pair Corralation between Easyhome New and Caihong Display
Assuming the 90 days trading horizon Easyhome New Retail is expected to generate 0.98 times more return on investment than Caihong Display. However, Easyhome New Retail is 1.02 times less risky than Caihong Display. It trades about 0.15 of its potential returns per unit of risk. Caihong Display Devices is currently generating about -0.16 per unit of risk. If you would invest 282.00 in Easyhome New Retail on September 1, 2024 and sell it today you would earn a total of 21.00 from holding Easyhome New Retail or generate 7.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easyhome New Retail vs. Caihong Display Devices
Performance |
| Timeline |
| Easyhome New Retail |
| Caihong Display Devices |
Easyhome New and Caihong Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easyhome New and Caihong Display
The main advantage of trading using opposite Easyhome New and Caihong Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, Caihong Display 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 Caihong Display will offset losses from the drop in Caihong Display's long position.| Easyhome New vs. Bank of China | Easyhome New vs. Kweichow Moutai Co | Easyhome New vs. PetroChina Co Ltd | Easyhome New vs. Bank of Communications |
| Caihong Display vs. Eastroc Beverage Group | Caihong Display vs. Fujian Anjoy Foods | Caihong Display vs. Huatian Hotel Group | Caihong Display vs. Beijing Sanyuan Foods |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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