Correlation Between Huafa Industrial and Easyhome New
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By analyzing existing cross correlation between Huafa Industrial Co and Easyhome New Retail, you can compare the effects of market volatilities on Huafa Industrial 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 Huafa Industrial with a short position of Easyhome New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huafa Industrial and Easyhome New.
Diversification Opportunities for Huafa Industrial and Easyhome New
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Huafa and Easyhome is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Huafa Industrial 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 Huafa Industrial 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 Huafa Industrial 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 Huafa Industrial i.e., Huafa Industrial and Easyhome New go up and down completely randomly.
Pair Corralation between Huafa Industrial and Easyhome New
Assuming the 90 days trading horizon Huafa Industrial is expected to generate 4.8 times less return on investment than Easyhome New. But when comparing it to its historical volatility, Huafa Industrial Co is 4.11 times less risky than Easyhome New. It trades about 0.22 of its potential returns per unit of risk. Easyhome New Retail is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 338.00 in Easyhome New Retail on November 29, 2024 and sell it today you would earn a total of 94.00 from holding Easyhome New Retail or generate 27.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huafa Industrial Co vs. Easyhome New Retail
Performance |
| Timeline |
| Huafa Industrial |
| Easyhome New Retail |
Huafa Industrial and Easyhome New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huafa Industrial and Easyhome New
The main advantage of trading using opposite Huafa Industrial and Easyhome New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huafa Industrial 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.| Huafa Industrial vs. Sanbo Hospital Management | Huafa Industrial vs. Jilin Jlu Communication | Huafa Industrial vs. Guangxi Wuzhou Communications | Huafa Industrial vs. CICC Fund Management |
| Easyhome New vs. Agricultural Bank of | Easyhome New vs. Jilin Jlu Communication | Easyhome New vs. Fiberhome Telecommunication Technologies | Easyhome New vs. Guangxi Wuzhou 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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