Correlation Between Dongfeng Automobile and Easyhome New
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By analyzing existing cross correlation between Dongfeng Automobile Co and Easyhome New Retail, you can compare the effects of market volatilities on Dongfeng Automobile 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 Dongfeng Automobile with a short position of Easyhome New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongfeng Automobile and Easyhome New.
Diversification Opportunities for Dongfeng Automobile and Easyhome New
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dongfeng and Easyhome is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Dongfeng Automobile Co 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 Dongfeng Automobile 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 Dongfeng Automobile Co 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 Dongfeng Automobile i.e., Dongfeng Automobile and Easyhome New go up and down completely randomly.
Pair Corralation between Dongfeng Automobile and Easyhome New
Assuming the 90 days trading horizon Dongfeng Automobile is expected to generate 7.34 times less return on investment than Easyhome New. But when comparing it to its historical volatility, Dongfeng Automobile Co is 1.15 times less risky than Easyhome New. It trades about 0.02 of its potential returns per unit of risk. Easyhome New Retail is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 233.00 in Easyhome New Retail on October 18, 2024 and sell it today you would earn a total of 121.00 from holding Easyhome New Retail or generate 51.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongfeng Automobile Co vs. Easyhome New Retail
Performance |
| Timeline |
| Dongfeng Automobile |
| Easyhome New Retail |
Dongfeng Automobile and Easyhome New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongfeng Automobile and Easyhome New
The main advantage of trading using opposite Dongfeng Automobile and Easyhome New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongfeng Automobile 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.| Dongfeng Automobile vs. Changjiang Jinggong Steel | Dongfeng Automobile vs. Industrial Bank Co | Dongfeng Automobile vs. Xiamen Bank Co | Dongfeng Automobile vs. Baoshan Iron Steel |
| Easyhome New vs. Jilin Jlu Communication | Easyhome New vs. Queclink Wireless Solutions | Easyhome New vs. Fiberhome Telecommunication Technologies | Easyhome New vs. Dongfeng Automobile Co |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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