Correlation Between Shandong Hongchuang and Easyhome New
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By analyzing existing cross correlation between Shandong Hongchuang Aluminum and Easyhome New Retail, you can compare the effects of market volatilities on Shandong Hongchuang 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 Shandong Hongchuang with a short position of Easyhome New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Hongchuang and Easyhome New.
Diversification Opportunities for Shandong Hongchuang and Easyhome New
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Easyhome is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Hongchuang Aluminum 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 Shandong Hongchuang 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 Shandong Hongchuang Aluminum 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 Shandong Hongchuang i.e., Shandong Hongchuang and Easyhome New go up and down completely randomly.
Pair Corralation between Shandong Hongchuang and Easyhome New
Assuming the 90 days trading horizon Shandong Hongchuang Aluminum is expected to generate 1.04 times more return on investment than Easyhome New. However, Shandong Hongchuang is 1.04 times more volatile than Easyhome New Retail. It trades about 0.08 of its potential returns per unit of risk. Easyhome New Retail is currently generating about -0.01 per unit of risk. If you would invest 422.00 in Shandong Hongchuang Aluminum on August 31, 2024 and sell it today you would earn a total of 310.00 from holding Shandong Hongchuang Aluminum or generate 73.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Hongchuang Aluminum vs. Easyhome New Retail
Performance |
| Timeline |
| Shandong Hongchuang |
| Easyhome New Retail |
Shandong Hongchuang and Easyhome New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Hongchuang and Easyhome New
The main advantage of trading using opposite Shandong Hongchuang and Easyhome New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Hongchuang 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.| Shandong Hongchuang vs. Sinofibers Technology Co | Shandong Hongchuang vs. Guangzhou KingTeller Technology | Shandong Hongchuang vs. Tianjin Pengling Rubber | Shandong Hongchuang vs. Kangping Technology Co |
| Easyhome New vs. China State Construction | Easyhome New vs. China Merchants Shekou | Easyhome New vs. Huafa Industrial Co | Easyhome New vs. China International Capital |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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