Correlation Between EAGLE MATERIALS and Spacefy
Can any of the company-specific risk be diversified away by investing in both EAGLE MATERIALS and Spacefy 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 EAGLE MATERIALS and Spacefy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EAGLE MATERIALS and Spacefy, you can compare the effects of market volatilities on EAGLE MATERIALS and Spacefy 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 EAGLE MATERIALS with a short position of Spacefy. Check out your portfolio center. Please also check ongoing floating volatility patterns of EAGLE MATERIALS and Spacefy.
Diversification Opportunities for EAGLE MATERIALS and Spacefy
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between EAGLE and Spacefy is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding EAGLE MATERIALS and Spacefy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spacefy and EAGLE MATERIALS 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 EAGLE MATERIALS are associated (or correlated) with Spacefy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spacefy has no effect on the direction of EAGLE MATERIALS i.e., EAGLE MATERIALS and Spacefy go up and down completely randomly.
Pair Corralation between EAGLE MATERIALS and Spacefy
Assuming the 90 days trading horizon EAGLE MATERIALS is expected to generate 326.3 times less return on investment than Spacefy. But when comparing it to its historical volatility, EAGLE MATERIALS is 142.63 times less risky than Spacefy. It trades about 0.2 of its potential returns per unit of risk. Spacefy is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 0.05 in Spacefy on September 2, 2024 and sell it today you would earn a total of 0.15 from holding Spacefy or generate 300.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EAGLE MATERIALS vs. Spacefy
Performance |
| Timeline |
| EAGLE MATERIALS |
| Spacefy |
EAGLE MATERIALS and Spacefy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EAGLE MATERIALS and Spacefy
The main advantage of trading using opposite EAGLE MATERIALS and Spacefy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EAGLE MATERIALS position performs unexpectedly, Spacefy 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 Spacefy will offset losses from the drop in Spacefy's long position.| EAGLE MATERIALS vs. BJs Wholesale Club | EAGLE MATERIALS vs. Caseys General Stores | EAGLE MATERIALS vs. American Public Education | EAGLE MATERIALS vs. Fast Retailing Co |
| Spacefy vs. Playtech plc | Spacefy vs. Beijing Media | Spacefy vs. PLAYSTUDIOS A DL 0001 | Spacefy vs. GigaMedia |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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