Correlation Between Hangzhou Weiguang and Easyhome New
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By analyzing existing cross correlation between Hangzhou Weiguang Electronic and Easyhome New Retail, you can compare the effects of market volatilities on Hangzhou Weiguang 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 Hangzhou Weiguang with a short position of Easyhome New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Weiguang and Easyhome New.
Diversification Opportunities for Hangzhou Weiguang and Easyhome New
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hangzhou and Easyhome is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Weiguang Electronic 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 Hangzhou Weiguang 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 Hangzhou Weiguang Electronic 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 Hangzhou Weiguang i.e., Hangzhou Weiguang and Easyhome New go up and down completely randomly.
Pair Corralation between Hangzhou Weiguang and Easyhome New
Assuming the 90 days trading horizon Hangzhou Weiguang Electronic is expected to generate 1.16 times more return on investment than Easyhome New. However, Hangzhou Weiguang is 1.16 times more volatile than Easyhome New Retail. It trades about 0.0 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 2,788 in Hangzhou Weiguang Electronic on September 1, 2024 and sell it today you would lose (352.00) from holding Hangzhou Weiguang Electronic or give up 12.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.77% |
| Values | Daily Returns |
Hangzhou Weiguang Electronic vs. Easyhome New Retail
Performance |
| Timeline |
| Hangzhou Weiguang |
| Easyhome New Retail |
Hangzhou Weiguang and Easyhome New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Weiguang and Easyhome New
The main advantage of trading using opposite Hangzhou Weiguang and Easyhome New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Weiguang 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.| Hangzhou Weiguang vs. China Life Insurance | Hangzhou Weiguang vs. Cinda Securities Co | Hangzhou Weiguang vs. Piotech Inc A | Hangzhou Weiguang vs. Dongxing Sec Co |
| Easyhome New vs. Bank of China | Easyhome New vs. Kweichow Moutai Co | Easyhome New vs. PetroChina Co Ltd | Easyhome New vs. Bank of Communications |
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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