Correlation Between Easyhome New and Dazhong Transportation
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By analyzing existing cross correlation between Easyhome New Retail and Dazhong Transportation Group, you can compare the effects of market volatilities on Easyhome New and Dazhong Transportation 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 Dazhong Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and Dazhong Transportation.
Diversification Opportunities for Easyhome New and Dazhong Transportation
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Easyhome and Dazhong is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and Dazhong Transportation Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dazhong Transportation 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 Dazhong Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dazhong Transportation has no effect on the direction of Easyhome New i.e., Easyhome New and Dazhong Transportation go up and down completely randomly.
Pair Corralation between Easyhome New and Dazhong Transportation
Assuming the 90 days trading horizon Easyhome New Retail is expected to generate 2.26 times more return on investment than Dazhong Transportation. However, Easyhome New is 2.26 times more volatile than Dazhong Transportation Group. It trades about 0.32 of its potential returns per unit of risk. Dazhong Transportation Group is currently generating about -0.08 per unit of risk. If you would invest 298.00 in Easyhome New Retail on September 13, 2024 and sell it today you would earn a total of 94.00 from holding Easyhome New Retail or generate 31.54% 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. Dazhong Transportation Group
Performance |
| Timeline |
| Easyhome New Retail |
| Dazhong Transportation |
Easyhome New and Dazhong Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easyhome New and Dazhong Transportation
The main advantage of trading using opposite Easyhome New and Dazhong Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, Dazhong Transportation 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 Dazhong Transportation will offset losses from the drop in Dazhong Transportation's long position.| Easyhome New vs. Ming Yang Smart | Easyhome New vs. 159681 | Easyhome New vs. 159005 | Easyhome New vs. Loctek Ergonomic Technology |
| Dazhong Transportation vs. Ming Yang Smart | Dazhong Transportation vs. 159681 | Dazhong Transportation vs. 159005 | Dazhong Transportation 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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