Correlation Between Eastern Media and Eagle Cold
Can any of the company-specific risk be diversified away by investing in both Eastern Media and Eagle Cold 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 Eastern Media and Eagle Cold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastern Media International and Eagle Cold Storage, you can compare the effects of market volatilities on Eastern Media and Eagle Cold 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 Eastern Media with a short position of Eagle Cold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Media and Eagle Cold.
Diversification Opportunities for Eastern Media and Eagle Cold
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eastern and Eagle is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Media International and Eagle Cold Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Cold Storage and Eastern Media 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 Eastern Media International are associated (or correlated) with Eagle Cold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Cold Storage has no effect on the direction of Eastern Media i.e., Eastern Media and Eagle Cold go up and down completely randomly.
Pair Corralation between Eastern Media and Eagle Cold
Assuming the 90 days trading horizon Eastern Media International is expected to generate 4.76 times more return on investment than Eagle Cold. However, Eastern Media is 4.76 times more volatile than Eagle Cold Storage. It trades about 0.11 of its potential returns per unit of risk. Eagle Cold Storage is currently generating about -0.12 per unit of risk. If you would invest 1,740 in Eastern Media International on December 26, 2024 and sell it today you would earn a total of 95.00 from holding Eastern Media International or generate 5.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Eastern Media International vs. Eagle Cold Storage
Performance |
| Timeline |
| Eastern Media Intern |
| Eagle Cold Storage |
Eastern Media and Eagle Cold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Media and Eagle Cold
The main advantage of trading using opposite Eastern Media and Eagle Cold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Media position performs unexpectedly, Eagle Cold 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 Eagle Cold will offset losses from the drop in Eagle Cold's long position.| Eastern Media vs. Gem Terminal Industry | Eastern Media vs. K Laser Technology | Eastern Media vs. Zinwell | Eastern Media vs. I Chiun Precision Industry |
| Eagle Cold vs. uPI Semiconductor Corp | Eagle Cold vs. Taiwan Semiconductor Co | Eagle Cold vs. Sunspring Metal Corp | Eagle Cold vs. Holtek Semiconductor |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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