Correlation Between Shaanxi Construction and Easyhome New
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shaanxi Construction Machinery and Easyhome New Retail, you can compare the effects of market volatilities on Shaanxi Construction 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 Shaanxi Construction with a short position of Easyhome New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Construction and Easyhome New.
Diversification Opportunities for Shaanxi Construction and Easyhome New
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shaanxi and Easyhome is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Construction Machinery 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 Shaanxi Construction 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 Shaanxi Construction Machinery 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 Shaanxi Construction i.e., Shaanxi Construction and Easyhome New go up and down completely randomly.
Pair Corralation between Shaanxi Construction and Easyhome New
Assuming the 90 days trading horizon Shaanxi Construction Machinery is expected to generate 1.48 times more return on investment than Easyhome New. However, Shaanxi Construction is 1.48 times more volatile than Easyhome New Retail. It trades about -0.01 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 496.00 in Shaanxi Construction Machinery on August 29, 2024 and sell it today you would lose (158.00) from holding Shaanxi Construction Machinery or give up 31.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Construction Machinery vs. Easyhome New Retail
Performance |
| Timeline |
| Shaanxi Construction |
| Easyhome New Retail |
Shaanxi Construction and Easyhome New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Construction and Easyhome New
The main advantage of trading using opposite Shaanxi Construction and Easyhome New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Construction 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.| Shaanxi Construction vs. Cambricon Technologies Corp | Shaanxi Construction vs. Loongson Technology Corp | Shaanxi Construction vs. Chongqing Road Bridge | Shaanxi Construction vs. Shenzhen Fortune Trend |
| Easyhome New vs. Caihong Display Devices | Easyhome New vs. Shaanxi Construction Machinery | Easyhome New vs. Jiangsu Jinling Sports | Easyhome New vs. Huitong Construction Group |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |