Correlation Between China Aluminum and Easyhome New
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By analyzing existing cross correlation between China Aluminum International and Easyhome New Retail, you can compare the effects of market volatilities on China Aluminum 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 China Aluminum with a short position of Easyhome New. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aluminum and Easyhome New.
Diversification Opportunities for China Aluminum and Easyhome New
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Easyhome is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding China Aluminum International 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 China Aluminum 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 China Aluminum International 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 China Aluminum i.e., China Aluminum and Easyhome New go up and down completely randomly.
Pair Corralation between China Aluminum and Easyhome New
Assuming the 90 days trading horizon China Aluminum International is expected to under-perform the Easyhome New. But the stock apears to be less risky and, when comparing its historical volatility, China Aluminum International is 3.64 times less risky than Easyhome New. The stock trades about -0.16 of its potential returns per unit of risk. The Easyhome New Retail is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 292.00 in Easyhome New Retail on September 28, 2024 and sell it today you would earn a total of 102.00 from holding Easyhome New Retail or generate 34.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Aluminum International vs. Easyhome New Retail
Performance |
| Timeline |
| China Aluminum Inter |
| Easyhome New Retail |
China Aluminum and Easyhome New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Aluminum and Easyhome New
The main advantage of trading using opposite China Aluminum and Easyhome New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aluminum 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.| China Aluminum vs. Ming Yang Smart | China Aluminum vs. 159681 | China Aluminum vs. 159005 | China Aluminum vs. Loctek Ergonomic Technology |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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