Correlation Between EAST SIDE and CARETRUST REIT
Can any of the company-specific risk be diversified away by investing in both EAST SIDE and CARETRUST REIT 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 EAST SIDE and CARETRUST REIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EAST SIDE GAMES and CARETRUST REIT DL 01, you can compare the effects of market volatilities on EAST SIDE and CARETRUST REIT 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 EAST SIDE with a short position of CARETRUST REIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of EAST SIDE and CARETRUST REIT.
Diversification Opportunities for EAST SIDE and CARETRUST REIT
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EAST and CARETRUST is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding EAST SIDE GAMES and CARETRUST REIT DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARETRUST REIT DL and EAST SIDE 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 EAST SIDE GAMES are associated (or correlated) with CARETRUST REIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CARETRUST REIT DL has no effect on the direction of EAST SIDE i.e., EAST SIDE and CARETRUST REIT go up and down completely randomly.
Pair Corralation between EAST SIDE and CARETRUST REIT
Assuming the 90 days horizon EAST SIDE is expected to generate 1.06 times less return on investment than CARETRUST REIT. In addition to that, EAST SIDE is 5.0 times more volatile than CARETRUST REIT DL 01. It trades about 0.02 of its total potential returns per unit of risk. CARETRUST REIT DL 01 is currently generating about 0.11 per unit of volatility. If you would invest 1,678 in CARETRUST REIT DL 01 on September 2, 2024 and sell it today you would earn a total of 1,122 from holding CARETRUST REIT DL 01 or generate 66.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EAST SIDE GAMES vs. CARETRUST REIT DL 01
Performance |
| Timeline |
| EAST SIDE GAMES |
| CARETRUST REIT DL |
EAST SIDE and CARETRUST REIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EAST SIDE and CARETRUST REIT
The main advantage of trading using opposite EAST SIDE and CARETRUST REIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EAST SIDE position performs unexpectedly, CARETRUST REIT 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 CARETRUST REIT will offset losses from the drop in CARETRUST REIT's long position.| EAST SIDE vs. Nintendo Co | EAST SIDE vs. Sea Limited | EAST SIDE vs. Superior Plus Corp | EAST SIDE vs. NMI Holdings |
| CARETRUST REIT vs. Apple Inc | CARETRUST REIT vs. Apple Inc | CARETRUST REIT vs. Apple Inc | CARETRUST REIT vs. Apple 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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