Correlation Between Easyhome New and WuXi AppTec
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By analyzing existing cross correlation between Easyhome New Retail and WuXi AppTec Co, you can compare the effects of market volatilities on Easyhome New and WuXi AppTec 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 WuXi AppTec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and WuXi AppTec.
Diversification Opportunities for Easyhome New and WuXi AppTec
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Easyhome and WuXi is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and WuXi AppTec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WuXi AppTec 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 WuXi AppTec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WuXi AppTec has no effect on the direction of Easyhome New i.e., Easyhome New and WuXi AppTec go up and down completely randomly.
Pair Corralation between Easyhome New and WuXi AppTec
Assuming the 90 days trading horizon Easyhome New Retail is expected to generate 2.59 times more return on investment than WuXi AppTec. However, Easyhome New is 2.59 times more volatile than WuXi AppTec Co. It trades about 0.24 of its potential returns per unit of risk. WuXi AppTec Co is currently generating about 0.26 per unit of risk. If you would invest 298.00 in Easyhome New Retail on September 24, 2024 and sell it today you would earn a total of 98.00 from holding Easyhome New Retail or generate 32.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Easyhome New Retail vs. WuXi AppTec Co
Performance |
Timeline |
Easyhome New Retail |
WuXi AppTec |
Easyhome New and WuXi AppTec Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Easyhome New and WuXi AppTec
The main advantage of trading using opposite Easyhome New and WuXi AppTec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, WuXi AppTec 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 WuXi AppTec will offset losses from the drop in WuXi AppTec's long position.Easyhome New vs. Industrial and Commercial | Easyhome New vs. Agricultural Bank of | Easyhome New vs. China Construction Bank | Easyhome New vs. Bank of China |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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