Correlation Between Guangzhou Tinci and Easyhome New
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By analyzing existing cross correlation between Guangzhou Tinci Materials and Easyhome New Retail, you can compare the effects of market volatilities on Guangzhou Tinci 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 Guangzhou Tinci with a short position of Easyhome New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Easyhome New.
Diversification Opportunities for Guangzhou Tinci and Easyhome New
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangzhou and Easyhome is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials 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 Guangzhou Tinci 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 Guangzhou Tinci Materials 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 Guangzhou Tinci i.e., Guangzhou Tinci and Easyhome New go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Easyhome New
Assuming the 90 days trading horizon Guangzhou Tinci Materials is expected to generate 0.42 times more return on investment than Easyhome New. However, Guangzhou Tinci Materials is 2.39 times less risky than Easyhome New. It trades about 0.1 of its potential returns per unit of risk. Easyhome New Retail is currently generating about -0.21 per unit of risk. If you would invest 1,782 in Guangzhou Tinci Materials on November 7, 2024 and sell it today you would earn a total of 46.00 from holding Guangzhou Tinci Materials or generate 2.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Tinci Materials vs. Easyhome New Retail
Performance |
| Timeline |
| Guangzhou Tinci Materials |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Easyhome New Retail |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Guangzhou Tinci and Easyhome New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and Easyhome New
The main advantage of trading using opposite Guangzhou Tinci and Easyhome New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci 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.The idea behind Guangzhou Tinci Materials and Easyhome New Retail pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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