Correlation Between Easyhome New and China Building
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By analyzing existing cross correlation between Easyhome New Retail and China Building Material, you can compare the effects of market volatilities on Easyhome New and China Building 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 Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and China Building.
Diversification Opportunities for Easyhome New and China Building
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Easyhome and China is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and China Building Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Building Material 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 Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Building Material has no effect on the direction of Easyhome New i.e., Easyhome New and China Building go up and down completely randomly.
Pair Corralation between Easyhome New and China Building
Assuming the 90 days trading horizon Easyhome New Retail is expected to generate 0.94 times more return on investment than China Building. However, Easyhome New Retail is 1.06 times less risky than China Building. It trades about 0.0 of its potential returns per unit of risk. China Building Material is currently generating about -0.02 per unit of risk. If you would invest 386.00 in Easyhome New Retail on September 12, 2024 and sell it today you would lose (30.00) from holding Easyhome New Retail or give up 7.77% 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. China Building Material
Performance |
| Timeline |
| Easyhome New Retail |
| China Building Material |
Easyhome New and China Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easyhome New and China Building
The main advantage of trading using opposite Easyhome New and China Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, China Building 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 Building will offset losses from the drop in China Building's long position.| Easyhome New vs. Lutian Machinery Co | Easyhome New vs. PetroChina Co Ltd | Easyhome New vs. Bank of China | Easyhome New vs. Gansu Jiu Steel |
| China Building vs. Qumei Furniture Group | China Building vs. AUPU Home Style | China Building vs. Easyhome New Retail | China Building vs. Markor International Home |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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