Correlation Between Eagle Materials and SINGAPORE POST
Can any of the company-specific risk be diversified away by investing in both Eagle Materials and SINGAPORE POST 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 SINGAPORE POST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Materials and SINGAPORE POST, you can compare the effects of market volatilities on Eagle Materials and SINGAPORE POST 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 SINGAPORE POST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Materials and SINGAPORE POST.
Diversification Opportunities for Eagle Materials and SINGAPORE POST
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eagle and SINGAPORE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Materials and SINGAPORE POST in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE POST 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 SINGAPORE POST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINGAPORE POST has no effect on the direction of Eagle Materials i.e., Eagle Materials and SINGAPORE POST go up and down completely randomly.
Pair Corralation between Eagle Materials and SINGAPORE POST
If you would invest (100.00) in SINGAPORE POST on January 22, 2025 and sell it today you would earn a total of 100.00 from holding SINGAPORE POST or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Eagle Materials vs. SINGAPORE POST
Performance |
| Timeline |
| Eagle Materials |
| SINGAPORE POST |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Eagle Materials and SINGAPORE POST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Materials and SINGAPORE POST
The main advantage of trading using opposite Eagle Materials and SINGAPORE POST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Materials position performs unexpectedly, SINGAPORE POST 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 SINGAPORE POST will offset losses from the drop in SINGAPORE POST's long position.| Eagle Materials vs. G5 Entertainment AB | Eagle Materials vs. PARKEN Sport Entertainment | Eagle Materials vs. Compugroup Medical SE | Eagle Materials vs. OFFICE DEPOT |
| SINGAPORE POST vs. CI GAMES SA | SINGAPORE POST vs. GAMING FAC SA | SINGAPORE POST vs. FUTURE GAMING GRP | SINGAPORE POST vs. ETFS Coffee ETC |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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