Correlation Between Easyhome New and Shenzhen Hifuture
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By analyzing existing cross correlation between Easyhome New Retail and Shenzhen Hifuture Electric, you can compare the effects of market volatilities on Easyhome New and Shenzhen Hifuture 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 Easyhome New with a short position of Shenzhen Hifuture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and Shenzhen Hifuture.
Diversification Opportunities for Easyhome New and Shenzhen Hifuture
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Easyhome and Shenzhen is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and Shenzhen Hifuture Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Hifuture and Easyhome New 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 Easyhome New Retail are associated (or correlated) with Shenzhen Hifuture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Hifuture has no effect on the direction of Easyhome New i.e., Easyhome New and Shenzhen Hifuture go up and down completely randomly.
Pair Corralation between Easyhome New and Shenzhen Hifuture
Assuming the 90 days trading horizon Easyhome New Retail is expected to generate 1.54 times more return on investment than Shenzhen Hifuture. However, Easyhome New is 1.54 times more volatile than Shenzhen Hifuture Electric. It trades about 0.18 of its potential returns per unit of risk. Shenzhen Hifuture Electric is currently generating about 0.25 per unit of risk. If you would invest 244.00 in Easyhome New Retail on September 24, 2024 and sell it today you would earn a total of 129.00 from holding Easyhome New Retail or generate 52.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 98.36% |
Values | Daily Returns |
Easyhome New Retail vs. Shenzhen Hifuture Electric
Performance |
Timeline |
Easyhome New Retail |
Shenzhen Hifuture |
Easyhome New and Shenzhen Hifuture Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Easyhome New and Shenzhen Hifuture
The main advantage of trading using opposite Easyhome New and Shenzhen Hifuture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, Shenzhen Hifuture 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 Shenzhen Hifuture will offset losses from the drop in Shenzhen Hifuture's long position.Easyhome New vs. Guangdong Jingyi Metal | Easyhome New vs. Xinjiang Baodi Mining | Easyhome New vs. Dirui Industrial Co | Easyhome New vs. Anhui Deli Household |
Shenzhen Hifuture vs. Sinosteel Luonai Materials | Shenzhen Hifuture vs. Guangzhou KingTeller Technology | Shenzhen Hifuture vs. Sinofibers Technology Co | Shenzhen Hifuture vs. Guangzhou Restaurants Group |
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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