Correlation Between AEON STORES and EAGLE MATERIALS
Can any of the company-specific risk be diversified away by investing in both AEON STORES and EAGLE MATERIALS 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 AEON STORES and EAGLE MATERIALS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEON STORES and EAGLE MATERIALS, you can compare the effects of market volatilities on AEON STORES and EAGLE MATERIALS 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 AEON STORES with a short position of EAGLE MATERIALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEON STORES and EAGLE MATERIALS.
Diversification Opportunities for AEON STORES and EAGLE MATERIALS
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AEON and EAGLE is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding AEON STORES and EAGLE MATERIALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAGLE MATERIALS and AEON STORES 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 AEON STORES are associated (or correlated) with EAGLE MATERIALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAGLE MATERIALS has no effect on the direction of AEON STORES i.e., AEON STORES and EAGLE MATERIALS go up and down completely randomly.
Pair Corralation between AEON STORES and EAGLE MATERIALS
If you would invest 26,000 in EAGLE MATERIALS on August 30, 2024 and sell it today you would earn a total of 3,000 from holding EAGLE MATERIALS or generate 11.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
AEON STORES vs. EAGLE MATERIALS
Performance |
| Timeline |
| AEON STORES |
| EAGLE MATERIALS |
AEON STORES and EAGLE MATERIALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEON STORES and EAGLE MATERIALS
The main advantage of trading using opposite AEON STORES and EAGLE MATERIALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEON STORES position performs unexpectedly, EAGLE MATERIALS 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 MATERIALS will offset losses from the drop in EAGLE MATERIALS's long position.| AEON STORES vs. Apple Inc | AEON STORES vs. Apple Inc | AEON STORES vs. Superior Plus Corp | AEON STORES vs. SIVERS SEMICONDUCTORS AB |
| EAGLE MATERIALS vs. Sunstone Hotel Investors | EAGLE MATERIALS vs. Amkor Technology | EAGLE MATERIALS vs. Meli Hotels International | EAGLE MATERIALS vs. MHP Hotel AG |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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