Correlation Between Easyhome New and Hefei Metalforming
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By analyzing existing cross correlation between Easyhome New Retail and Hefei Metalforming Mach, you can compare the effects of market volatilities on Easyhome New and Hefei Metalforming 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 Hefei Metalforming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and Hefei Metalforming.
Diversification Opportunities for Easyhome New and Hefei Metalforming
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Easyhome and Hefei is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and Hefei Metalforming Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hefei Metalforming Mach 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 Hefei Metalforming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hefei Metalforming Mach has no effect on the direction of Easyhome New i.e., Easyhome New and Hefei Metalforming go up and down completely randomly.
Pair Corralation between Easyhome New and Hefei Metalforming
Assuming the 90 days trading horizon Easyhome New Retail is expected to under-perform the Hefei Metalforming. But the stock apears to be less risky and, when comparing its historical volatility, Easyhome New Retail is 1.51 times less risky than Hefei Metalforming. The stock trades about -0.02 of its potential returns per unit of risk. The Hefei Metalforming Mach is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 910.00 in Hefei Metalforming Mach on September 1, 2024 and sell it today you would lose (131.00) from holding Hefei Metalforming Mach or give up 14.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easyhome New Retail vs. Hefei Metalforming Mach
Performance |
| Timeline |
| Easyhome New Retail |
| Hefei Metalforming Mach |
Easyhome New and Hefei Metalforming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easyhome New and Hefei Metalforming
The main advantage of trading using opposite Easyhome New and Hefei Metalforming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, Hefei Metalforming 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 Hefei Metalforming will offset losses from the drop in Hefei Metalforming'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 |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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