Correlation Between E Home and Fitell Ordinary
Can any of the company-specific risk be diversified away by investing in both E Home and Fitell Ordinary at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining E Home and Fitell Ordinary into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E Home Household Service and Fitell Ordinary, you can compare the effects of market volatilities on E Home and Fitell Ordinary 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 E Home with a short position of Fitell Ordinary. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Home and Fitell Ordinary.
Diversification Opportunities for E Home and Fitell Ordinary
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EJH and Fitell is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding E Home Household Service and Fitell Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fitell Ordinary and E 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 E Home Household Service are associated (or correlated) with Fitell Ordinary. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fitell Ordinary has no effect on the direction of E Home i.e., E Home and Fitell Ordinary go up and down completely randomly.
Pair Corralation between E Home and Fitell Ordinary
Considering the 90-day investment horizon E Home Household Service is expected to generate 0.41 times more return on investment than Fitell Ordinary. However, E Home Household Service is 2.42 times less risky than Fitell Ordinary. It trades about -0.1 of its potential returns per unit of risk. Fitell Ordinary is currently generating about -0.23 per unit of risk. If you would invest 143.00 in E Home Household Service on August 15, 2025 and sell it today you would lose (41.00) from holding E Home Household Service or give up 28.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
E Home Household Service vs. Fitell Ordinary
Performance |
| Timeline |
| E Home Household |
| Fitell Ordinary |
E Home and Fitell Ordinary Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Home and Fitell Ordinary
The main advantage of trading using opposite E Home and Fitell Ordinary positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Home position performs unexpectedly, Fitell Ordinary 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 Fitell Ordinary will offset losses from the drop in Fitell Ordinary's long position.| E Home vs. Interactive Strength Common | E Home vs. Naas Technology ADR | E Home vs. Jowell Global | E Home vs. XWELL Inc |
| Fitell Ordinary vs. Jowell Global | Fitell Ordinary vs. Naas Technology ADR | Fitell Ordinary vs. WEBUY GLOBAL LTD | Fitell Ordinary vs. Jeffs Brands |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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