Correlation Between Easyhome New and China Construction
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By analyzing existing cross correlation between Easyhome New Retail and China Construction Bank, you can compare the effects of market volatilities on Easyhome New and China Construction 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 China Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and China Construction.
Diversification Opportunities for Easyhome New and China Construction
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Easyhome and China is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and China Construction Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Construction 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 China Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Construction Bank has no effect on the direction of Easyhome New i.e., Easyhome New and China Construction go up and down completely randomly.
Pair Corralation between Easyhome New and China Construction
Assuming the 90 days trading horizon Easyhome New Retail is expected to generate 5.21 times more return on investment than China Construction. However, Easyhome New is 5.21 times more volatile than China Construction Bank. It trades about 0.12 of its potential returns per unit of risk. China Construction Bank is currently generating about 0.21 per unit of risk. If you would invest 356.00 in Easyhome New Retail on October 11, 2024 and sell it today you would earn a total of 47.00 from holding Easyhome New Retail or generate 13.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easyhome New Retail vs. China Construction Bank
Performance |
| Timeline |
| Easyhome New Retail |
| China Construction Bank |
Easyhome New and China Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easyhome New and China Construction
The main advantage of trading using opposite Easyhome New and China Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, China Construction 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 China Construction will offset losses from the drop in China Construction'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 |
| China Construction vs. Luolai Home Textile | China Construction vs. Sichuan Fulin Transportation | China Construction vs. Easyhome New Retail | China Construction vs. Road Environment Technology |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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