Correlation Between Jiangsu Jinling and Easyhome New
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Easyhome New Retail, you can compare the effects of market volatilities on Jiangsu Jinling 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 Jiangsu Jinling with a short position of Easyhome New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Easyhome New.
Diversification Opportunities for Jiangsu Jinling and Easyhome New
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jiangsu and Easyhome is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports 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 Jiangsu Jinling 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 Jiangsu Jinling Sports 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 Jiangsu Jinling i.e., Jiangsu Jinling and Easyhome New go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Easyhome New
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to under-perform the Easyhome New. In addition to that, Jiangsu Jinling is 1.18 times more volatile than Easyhome New Retail. It trades about -0.02 of its total potential returns per unit of risk. Easyhome New Retail is currently generating about 0.0 per unit of volatility. If you would invest 403.00 in Easyhome New Retail on November 9, 2024 and sell it today you would lose (62.00) from holding Easyhome New Retail or give up 15.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Easyhome New Retail
Performance |
| Timeline |
| Jiangsu Jinling Sports |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Easyhome New Retail |
Risk-Adjusted Performance
Modest
Weak | Strong |
Jiangsu Jinling and Easyhome New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Easyhome New
The main advantage of trading using opposite Jiangsu Jinling and Easyhome New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling 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 Jiangsu Jinling Sports 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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