Correlation Between Smith Douglas and E Home
Can any of the company-specific risk be diversified away by investing in both Smith Douglas and E Home 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 Smith Douglas and E Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smith Douglas Homes and E Home Household Service, you can compare the effects of market volatilities on Smith Douglas and E Home 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 Smith Douglas with a short position of E Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smith Douglas and E Home.
Diversification Opportunities for Smith Douglas and E Home
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Smith and EJH is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Smith Douglas Homes and E Home Household Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Home Household and Smith Douglas 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 Smith Douglas Homes are associated (or correlated) with E Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Home Household has no effect on the direction of Smith Douglas i.e., Smith Douglas and E Home go up and down completely randomly.
Pair Corralation between Smith Douglas and E Home
Given the investment horizon of 90 days Smith Douglas Homes is expected to generate 0.62 times more return on investment than E Home. However, Smith Douglas Homes is 1.62 times less risky than E Home. It trades about 0.08 of its potential returns per unit of risk. E Home Household Service is currently generating about -0.09 per unit of risk. If you would invest 1,862 in Smith Douglas Homes on September 10, 2025 and sell it today you would earn a total of 221.00 from holding Smith Douglas Homes or generate 11.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Smith Douglas Homes vs. E Home Household Service
Performance |
| Timeline |
| Smith Douglas Homes |
| E Home Household |
Smith Douglas and E Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smith Douglas and E Home
The main advantage of trading using opposite Smith Douglas and E Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smith Douglas position performs unexpectedly, E Home 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 E Home will offset losses from the drop in E Home's long position.| Smith Douglas vs. Franklin BSP Realty | Smith Douglas vs. Saul Centers | Smith Douglas vs. Real Brokerage | Smith Douglas vs. MFA Financial |
| E Home vs. Interactive Strength Common | E Home vs. Naas Technology ADR | E Home vs. Jowell Global | E Home vs. XWELL Inc |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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