Correlation Between Guangdong Brandmax and Easyhome New
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By analyzing existing cross correlation between Guangdong Brandmax Marketing and Easyhome New Retail, you can compare the effects of market volatilities on Guangdong Brandmax 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 Guangdong Brandmax with a short position of Easyhome New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Brandmax and Easyhome New.
Diversification Opportunities for Guangdong Brandmax and Easyhome New
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Easyhome is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Brandmax Marketing 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 Guangdong Brandmax 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 Guangdong Brandmax Marketing 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 Guangdong Brandmax i.e., Guangdong Brandmax and Easyhome New go up and down completely randomly.
Pair Corralation between Guangdong Brandmax and Easyhome New
Assuming the 90 days trading horizon Guangdong Brandmax is expected to generate 1.03 times less return on investment than Easyhome New. In addition to that, Guangdong Brandmax is 1.78 times more volatile than Easyhome New Retail. It trades about 0.12 of its total potential returns per unit of risk. Easyhome New Retail is currently generating about 0.22 per unit of volatility. If you would invest 268.00 in Easyhome New Retail on August 24, 2024 and sell it today you would earn a total of 28.00 from holding Easyhome New Retail or generate 10.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Brandmax Marketing vs. Easyhome New Retail
Performance |
| Timeline |
| Guangdong Brandmax |
| Easyhome New Retail |
Guangdong Brandmax and Easyhome New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Brandmax and Easyhome New
The main advantage of trading using opposite Guangdong Brandmax and Easyhome New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Brandmax 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.| Guangdong Brandmax vs. Industrial and Commercial | Guangdong Brandmax vs. Agricultural Bank of | Guangdong Brandmax vs. China Construction Bank | Guangdong Brandmax vs. Bank of China |
| Easyhome New vs. Kweichow Moutai Co | Easyhome New vs. Contemporary Amperex Technology | Easyhome New vs. G bits Network Technology | Easyhome New vs. Beijing Roborock Technology |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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