Correlation Between Xilinmen Furniture and Easyhome New
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By analyzing existing cross correlation between Xilinmen Furniture Co and Easyhome New Retail, you can compare the effects of market volatilities on Xilinmen Furniture 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 Xilinmen Furniture with a short position of Easyhome New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xilinmen Furniture and Easyhome New.
Diversification Opportunities for Xilinmen Furniture and Easyhome New
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xilinmen and Easyhome is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Xilinmen Furniture 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 Xilinmen Furniture 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 Xilinmen Furniture 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 Xilinmen Furniture i.e., Xilinmen Furniture and Easyhome New go up and down completely randomly.
Pair Corralation between Xilinmen Furniture and Easyhome New
Assuming the 90 days trading horizon Xilinmen Furniture Co is expected to under-perform the Easyhome New. In addition to that, Xilinmen Furniture is 1.1 times more volatile than Easyhome New Retail. It trades about -0.05 of its total potential returns per unit of risk. Easyhome New Retail is currently generating about 0.14 per unit of volatility. If you would invest 290.00 in Easyhome New Retail on September 5, 2024 and sell it today you would earn a total of 20.00 from holding Easyhome New Retail or generate 6.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xilinmen Furniture Co vs. Easyhome New Retail
Performance |
| Timeline |
| Xilinmen Furniture |
| Easyhome New Retail |
Xilinmen Furniture and Easyhome New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xilinmen Furniture and Easyhome New
The main advantage of trading using opposite Xilinmen Furniture and Easyhome New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xilinmen Furniture 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.| Xilinmen Furniture vs. Agricultural Bank of | Xilinmen Furniture vs. Guilin Seamild Foods | Xilinmen Furniture vs. Jiamei Food Packaging | Xilinmen Furniture vs. Postal Savings Bank |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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