Correlation Between Fujian Longzhou and Easyhome New
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By analyzing existing cross correlation between Fujian Longzhou Transportation and Easyhome New Retail, you can compare the effects of market volatilities on Fujian Longzhou 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 Fujian Longzhou with a short position of Easyhome New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Easyhome New.
Diversification Opportunities for Fujian Longzhou and Easyhome New
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fujian and Easyhome is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation 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 Fujian Longzhou 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 Fujian Longzhou Transportation 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 Fujian Longzhou i.e., Fujian Longzhou and Easyhome New go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Easyhome New
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to generate 1.44 times more return on investment than Easyhome New. However, Fujian Longzhou is 1.44 times more volatile than Easyhome New Retail. It trades about 0.01 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 457.00 in Fujian Longzhou Transportation on October 14, 2024 and sell it today you would lose (61.00) from holding Fujian Longzhou Transportation or give up 13.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Longzhou Transportation vs. Easyhome New Retail
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Easyhome New Retail |
Fujian Longzhou and Easyhome New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Easyhome New
The main advantage of trading using opposite Fujian Longzhou and Easyhome New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou 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.| Fujian Longzhou vs. Shanghai Shuixing Home | Fujian Longzhou vs. DO Home Collection | Fujian Longzhou vs. XinJiang GuoTong Pipeline | Fujian Longzhou vs. Jahen Household Products |
| Easyhome New vs. Anhui Tongguan Copper | Easyhome New vs. Guocheng Mining Co | Easyhome New vs. Dalian Thermal Power | Easyhome New vs. Fujian Longzhou Transportation |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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