Correlation Between Easyhome New and Beijing Wantai
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By analyzing existing cross correlation between Easyhome New Retail and Beijing Wantai Biological, you can compare the effects of market volatilities on Easyhome New and Beijing Wantai 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 Beijing Wantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and Beijing Wantai.
Diversification Opportunities for Easyhome New and Beijing Wantai
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Easyhome and Beijing is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and Beijing Wantai Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wantai Biological 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 Beijing Wantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wantai Biological has no effect on the direction of Easyhome New i.e., Easyhome New and Beijing Wantai go up and down completely randomly.
Pair Corralation between Easyhome New and Beijing Wantai
Assuming the 90 days trading horizon Easyhome New Retail is expected to generate 1.38 times more return on investment than Beijing Wantai. However, Easyhome New is 1.38 times more volatile than Beijing Wantai Biological. It trades about 0.15 of its potential returns per unit of risk. Beijing Wantai Biological is currently generating about 0.02 per unit of risk. If you would invest 282.00 in Easyhome New Retail on September 2, 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easyhome New Retail vs. Beijing Wantai Biological
Performance |
| Timeline |
| Easyhome New Retail |
| Beijing Wantai Biological |
Easyhome New and Beijing Wantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easyhome New and Beijing Wantai
The main advantage of trading using opposite Easyhome New and Beijing Wantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, Beijing Wantai 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 Beijing Wantai will offset losses from the drop in Beijing Wantai'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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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