Correlation Between Changshu Automotive and Easyhome New
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By analyzing existing cross correlation between Changshu Automotive Trim and Easyhome New Retail, you can compare the effects of market volatilities on Changshu Automotive 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 Changshu Automotive with a short position of Easyhome New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changshu Automotive and Easyhome New.
Diversification Opportunities for Changshu Automotive and Easyhome New
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Changshu and Easyhome is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Changshu Automotive Trim 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 Changshu Automotive 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 Changshu Automotive Trim 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 Changshu Automotive i.e., Changshu Automotive and Easyhome New go up and down completely randomly.
Pair Corralation between Changshu Automotive and Easyhome New
Assuming the 90 days trading horizon Changshu Automotive Trim is expected to under-perform the Easyhome New. But the stock apears to be less risky and, when comparing its historical volatility, Changshu Automotive Trim is 1.18 times less risky than Easyhome New. The stock trades about -0.04 of its potential returns per unit of risk. The Easyhome New Retail is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 342.00 in Easyhome New Retail on September 14, 2024 and sell it today you would earn a total of 89.00 from holding Easyhome New Retail or generate 26.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.62% |
| Values | Daily Returns |
Changshu Automotive Trim vs. Easyhome New Retail
Performance |
| Timeline |
| Changshu Automotive Trim |
| Easyhome New Retail |
Changshu Automotive and Easyhome New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changshu Automotive and Easyhome New
The main advantage of trading using opposite Changshu Automotive and Easyhome New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changshu Automotive 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.| Changshu Automotive vs. Easyhome New Retail | Changshu Automotive vs. Chison Medical Technologies | Changshu Automotive vs. China World Trade | Changshu Automotive vs. Oppein Home Group |
| Easyhome New vs. Ming Yang Smart | Easyhome New vs. 159681 | Easyhome New vs. 159005 | Easyhome New vs. Loctek Ergonomic Technology |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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