Correlation Between Dazhong Transportation and Easyhome New
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By analyzing existing cross correlation between Dazhong Transportation Group and Easyhome New Retail, you can compare the effects of market volatilities on Dazhong Transportation 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 Dazhong Transportation with a short position of Easyhome New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dazhong Transportation and Easyhome New.
Diversification Opportunities for Dazhong Transportation and Easyhome New
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dazhong and Easyhome is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Dazhong Transportation Group 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 Dazhong Transportation 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 Dazhong Transportation Group 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 Dazhong Transportation i.e., Dazhong Transportation and Easyhome New go up and down completely randomly.
Pair Corralation between Dazhong Transportation and Easyhome New
Assuming the 90 days trading horizon Dazhong Transportation is expected to generate 1.02 times less return on investment than Easyhome New. But when comparing it to its historical volatility, Dazhong Transportation Group is 1.04 times less risky than Easyhome New. It trades about 0.03 of its potential returns per unit of risk. Easyhome New Retail is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 299.00 in Easyhome New Retail on November 3, 2024 and sell it today you would earn a total of 44.00 from holding Easyhome New Retail or generate 14.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dazhong Transportation Group vs. Easyhome New Retail
Performance |
| Timeline |
| Dazhong Transportation |
| Easyhome New Retail |
Dazhong Transportation and Easyhome New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dazhong Transportation and Easyhome New
The main advantage of trading using opposite Dazhong Transportation and Easyhome New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dazhong Transportation 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.| Dazhong Transportation vs. Anji Foodstuff Co | Dazhong Transportation vs. Citic Guoan Wine | Dazhong Transportation vs. Tonghua Grape Wine | Dazhong Transportation vs. JuneYao Dairy Co |
| Easyhome New vs. Chinese Universe Publishing | Easyhome New vs. COL Digital Publishing | Easyhome New vs. Wintao Communications Co | Easyhome New vs. Bank of Communications |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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