Correlation Between Country Group and Eastern Star
Can any of the company-specific risk be diversified away by investing in both Country Group and Eastern Star 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 Country Group and Eastern Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Country Group Development and Eastern Star Real, you can compare the effects of market volatilities on Country Group and Eastern Star 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 Country Group with a short position of Eastern Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Country Group and Eastern Star.
Diversification Opportunities for Country Group and Eastern Star
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Country and Eastern is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Country Group Development and Eastern Star Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Star Real and Country Group 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 Country Group Development are associated (or correlated) with Eastern Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Star Real has no effect on the direction of Country Group i.e., Country Group and Eastern Star go up and down completely randomly.
Pair Corralation between Country Group and Eastern Star
Assuming the 90 days trading horizon Country Group Development is expected to under-perform the Eastern Star. In addition to that, Country Group is 1.21 times more volatile than Eastern Star Real. It trades about -0.13 of its total potential returns per unit of risk. Eastern Star Real is currently generating about -0.07 per unit of volatility. If you would invest 21.00 in Eastern Star Real on October 23, 2024 and sell it today you would lose (1.00) from holding Eastern Star Real or give up 4.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Country Group Development vs. Eastern Star Real
Performance |
| Timeline |
| Country Group Development |
| Eastern Star Real |
Country Group and Eastern Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Country Group and Eastern Star
The main advantage of trading using opposite Country Group and Eastern Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Country Group position performs unexpectedly, Eastern Star 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 Eastern Star will offset losses from the drop in Eastern Star's long position.| Country Group vs. Eastern Star Real | Country Group vs. Bangkok Land Public | Country Group vs. Ananda Development Public | Country Group vs. Better World Green |
| Eastern Star vs. Bangkok Land Public | Eastern Star vs. Everland Public | Eastern Star vs. Amata Public | Eastern Star vs. Chonburi Concrete Product |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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