Correlation Between Zoy Home and Easyhome New
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By analyzing existing cross correlation between Zoy Home Furnishing and Easyhome New Retail, you can compare the effects of market volatilities on Zoy Home 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 Zoy Home with a short position of Easyhome New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoy Home and Easyhome New.
Diversification Opportunities for Zoy Home and Easyhome New
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zoy and Easyhome is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Zoy Home Furnishing 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 Zoy Home 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 Zoy Home Furnishing 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 Zoy Home i.e., Zoy Home and Easyhome New go up and down completely randomly.
Pair Corralation between Zoy Home and Easyhome New
Assuming the 90 days trading horizon Zoy Home is expected to generate 2.24 times less return on investment than Easyhome New. But when comparing it to its historical volatility, Zoy Home Furnishing is 1.68 times less risky than Easyhome New. It trades about 0.18 of its potential returns per unit of risk. Easyhome New Retail is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 296.00 in Easyhome New Retail on September 12, 2024 and sell it today you would earn a total of 60.00 from holding Easyhome New Retail or generate 20.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoy Home Furnishing vs. Easyhome New Retail
Performance |
| Timeline |
| Zoy Home Furnishing |
| Easyhome New Retail |
Zoy Home and Easyhome New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoy Home and Easyhome New
The main advantage of trading using opposite Zoy Home and Easyhome New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoy Home 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.| Zoy Home vs. Lutian Machinery Co | Zoy Home vs. PetroChina Co Ltd | Zoy Home vs. Bank of China | Zoy Home vs. Gansu Jiu Steel |
| Easyhome New vs. Lutian Machinery Co | Easyhome New vs. PetroChina Co Ltd | Easyhome New vs. Bank of China | Easyhome New vs. Gansu Jiu Steel |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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