Correlation Between Easyhome New and Bomin Electronics
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By analyzing existing cross correlation between Easyhome New Retail and Bomin Electronics Co, you can compare the effects of market volatilities on Easyhome New and Bomin Electronics 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 Bomin Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and Bomin Electronics.
Diversification Opportunities for Easyhome New and Bomin Electronics
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Easyhome and Bomin is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and Bomin Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bomin Electronics 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 Bomin Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bomin Electronics has no effect on the direction of Easyhome New i.e., Easyhome New and Bomin Electronics go up and down completely randomly.
Pair Corralation between Easyhome New and Bomin Electronics
Assuming the 90 days trading horizon Easyhome New Retail is expected to generate 0.89 times more return on investment than Bomin Electronics. However, Easyhome New Retail is 1.12 times less risky than Bomin Electronics. It trades about 0.1 of its potential returns per unit of risk. Bomin Electronics Co is currently generating about -0.01 per unit of risk. If you would invest 290.00 in Easyhome New Retail on September 3, 2024 and sell it today you would earn a total of 13.00 from holding Easyhome New Retail or generate 4.48% 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. Bomin Electronics Co
Performance |
| Timeline |
| Easyhome New Retail |
| Bomin Electronics |
Easyhome New and Bomin Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easyhome New and Bomin Electronics
The main advantage of trading using opposite Easyhome New and Bomin Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, Bomin Electronics 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 Bomin Electronics will offset losses from the drop in Bomin Electronics' long position.| Easyhome New vs. PetroChina Co Ltd | Easyhome New vs. China Mobile Limited | Easyhome New vs. Industrial and Commercial | Easyhome New vs. China Life Insurance |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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