Correlation Between Easyhome New and Qijing Machinery
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By analyzing existing cross correlation between Easyhome New Retail and Qijing Machinery, you can compare the effects of market volatilities on Easyhome New and Qijing Machinery 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 Qijing Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and Qijing Machinery.
Diversification Opportunities for Easyhome New and Qijing Machinery
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Easyhome and Qijing is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and Qijing Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qijing Machinery 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 Qijing Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qijing Machinery has no effect on the direction of Easyhome New i.e., Easyhome New and Qijing Machinery go up and down completely randomly.
Pair Corralation between Easyhome New and Qijing Machinery
Assuming the 90 days trading horizon Easyhome New Retail is expected to generate 1.51 times more return on investment than Qijing Machinery. However, Easyhome New is 1.51 times more volatile than Qijing Machinery. It trades about 0.12 of its potential returns per unit of risk. Qijing Machinery is currently generating about 0.05 per unit of risk. If you would invest 271.00 in Easyhome New Retail on October 14, 2024 and sell it today you would earn a total of 92.00 from holding Easyhome New Retail or generate 33.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easyhome New Retail vs. Qijing Machinery
Performance |
| Timeline |
| Easyhome New Retail |
| Qijing Machinery |
Easyhome New and Qijing Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easyhome New and Qijing Machinery
The main advantage of trading using opposite Easyhome New and Qijing Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, Qijing Machinery 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 Qijing Machinery will offset losses from the drop in Qijing Machinery's long position.| Easyhome New vs. Anhui Tongguan Copper | Easyhome New vs. Guocheng Mining Co | Easyhome New vs. Dalian Thermal Power | Easyhome New vs. Fujian Longzhou Transportation |
| Qijing Machinery vs. Easyhome New Retail | Qijing Machinery vs. Hangzhou Gaoxin Rubber | Qijing Machinery vs. Advanced Technology Materials | Qijing Machinery vs. Runjian Communication Co |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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