Correlation Between Easyhome New and Zhengping RoadBridge
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By analyzing existing cross correlation between Easyhome New Retail and Zhengping RoadBridge Constr, you can compare the effects of market volatilities on Easyhome New and Zhengping RoadBridge 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 Zhengping RoadBridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and Zhengping RoadBridge.
Diversification Opportunities for Easyhome New and Zhengping RoadBridge
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Easyhome and Zhengping is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and Zhengping RoadBridge Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengping RoadBridge 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 Zhengping RoadBridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengping RoadBridge has no effect on the direction of Easyhome New i.e., Easyhome New and Zhengping RoadBridge go up and down completely randomly.
Pair Corralation between Easyhome New and Zhengping RoadBridge
Assuming the 90 days trading horizon Easyhome New Retail is expected to generate 0.86 times more return on investment than Zhengping RoadBridge. However, Easyhome New Retail is 1.17 times less risky than Zhengping RoadBridge. It trades about 0.43 of its potential returns per unit of risk. Zhengping RoadBridge Constr is currently generating about 0.23 per unit of risk. If you would invest 290.00 in Easyhome New Retail on September 14, 2024 and sell it today you would earn a total of 141.00 from holding Easyhome New Retail or generate 48.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easyhome New Retail vs. Zhengping RoadBridge Constr
Performance |
| Timeline |
| Easyhome New Retail |
| Zhengping RoadBridge |
Easyhome New and Zhengping RoadBridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easyhome New and Zhengping RoadBridge
The main advantage of trading using opposite Easyhome New and Zhengping RoadBridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, Zhengping RoadBridge 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 Zhengping RoadBridge will offset losses from the drop in Zhengping RoadBridge's long position.| Easyhome New vs. Ming Yang Smart | Easyhome New vs. 159681 | Easyhome New vs. 159005 | Easyhome New vs. Loctek Ergonomic Technology |
| Zhengping RoadBridge vs. Ming Yang Smart | Zhengping RoadBridge vs. 159681 | Zhengping RoadBridge vs. 159005 | Zhengping RoadBridge vs. Loctek Ergonomic 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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