Correlation Between China Satellite and Easyhome New
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By analyzing existing cross correlation between China Satellite Communications and Easyhome New Retail, you can compare the effects of market volatilities on China Satellite 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 Satellite with a short position of Easyhome New. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Satellite and Easyhome New.
Diversification Opportunities for China Satellite and Easyhome New
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Easyhome is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding China Satellite Communications 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 Satellite 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 Satellite Communications 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 Satellite i.e., China Satellite and Easyhome New go up and down completely randomly.
Pair Corralation between China Satellite and Easyhome New
Assuming the 90 days trading horizon China Satellite is expected to generate 5.0 times less return on investment than Easyhome New. But when comparing it to its historical volatility, China Satellite Communications is 1.84 times less risky than Easyhome New. It trades about 0.08 of its potential returns per unit of risk. Easyhome New Retail is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 291.00 in Easyhome New Retail on September 27, 2024 and sell it today you would earn a total of 89.00 from holding Easyhome New Retail or generate 30.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Satellite Communications vs. Easyhome New Retail
Performance |
| Timeline |
| China Satellite Comm |
| Easyhome New Retail |
China Satellite and Easyhome New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Satellite and Easyhome New
The main advantage of trading using opposite China Satellite and Easyhome New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Satellite 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 Satellite vs. Chengdu Kanghua Biological | China Satellite vs. Beijing Wantai Biological | China Satellite vs. Suzhou Novoprotein Scientific | China Satellite vs. COL Digital Publishing |
| Easyhome New vs. Peoples Insurance of | Easyhome New vs. Shenzhen Glory Medical | Easyhome New vs. China Aluminum International | Easyhome New vs. Shanghai Jinfeng Wine |
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.
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