Correlation Between HeNan Splendor and Easyhome New
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By analyzing existing cross correlation between HeNan Splendor Science and Easyhome New Retail, you can compare the effects of market volatilities on HeNan Splendor and Easyhome New 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 HeNan Splendor with a short position of Easyhome New. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeNan Splendor and Easyhome New.
Diversification Opportunities for HeNan Splendor and Easyhome New
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HeNan and Easyhome is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding HeNan Splendor Science and Easyhome New Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Easyhome New Retail and HeNan Splendor 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 HeNan Splendor Science are associated (or correlated) with Easyhome New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Easyhome New Retail has no effect on the direction of HeNan Splendor i.e., HeNan Splendor and Easyhome New go up and down completely randomly.
Pair Corralation between HeNan Splendor and Easyhome New
Assuming the 90 days trading horizon HeNan Splendor Science is expected to generate 1.17 times more return on investment than Easyhome New. However, HeNan Splendor is 1.17 times more volatile than Easyhome New Retail. It trades about 0.02 of its potential returns per unit of risk. Easyhome New Retail is currently generating about 0.02 per unit of risk. If you would invest 858.00 in HeNan Splendor Science on October 11, 2024 and sell it today you would earn a total of 41.00 from holding HeNan Splendor Science or generate 4.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeNan Splendor Science vs. Easyhome New Retail
Performance |
| Timeline |
| HeNan Splendor Science |
| Easyhome New Retail |
HeNan Splendor and Easyhome New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeNan Splendor and Easyhome New
The main advantage of trading using opposite HeNan Splendor and Easyhome New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeNan Splendor position performs unexpectedly, Easyhome New 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 Easyhome New will offset losses from the drop in Easyhome New's long position.| HeNan Splendor vs. Anhui Tongguan Copper | HeNan Splendor vs. Guangdong Jingyi Metal | HeNan Splendor vs. Anhui Transport Consulting | HeNan Splendor vs. China Minmetals Rare |
| Easyhome New vs. Maoming Petro Chemical Shihua | Easyhome New vs. Zhejiang JIULI Hi tech | Easyhome New vs. Kuang Chi Technologies | Easyhome New vs. Miracll Chemicals 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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