Correlation Between Eagle Materials and THERMO FISHER
Can any of the company-specific risk be diversified away by investing in both Eagle Materials and THERMO FISHER 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 THERMO FISHER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Materials and THERMO FISHER SCIEN, you can compare the effects of market volatilities on Eagle Materials and THERMO FISHER 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 THERMO FISHER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Materials and THERMO FISHER.
Diversification Opportunities for Eagle Materials and THERMO FISHER
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eagle and THERMO is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Materials and THERMO FISHER SCIEN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THERMO FISHER SCIEN 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 THERMO FISHER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THERMO FISHER SCIEN has no effect on the direction of Eagle Materials i.e., Eagle Materials and THERMO FISHER go up and down completely randomly.
Pair Corralation between Eagle Materials and THERMO FISHER
Assuming the 90 days horizon Eagle Materials is expected to under-perform the THERMO FISHER. But the stock apears to be less risky and, when comparing its historical volatility, Eagle Materials is 1.2 times less risky than THERMO FISHER. The stock trades about -0.22 of its potential returns per unit of risk. The THERMO FISHER SCIEN is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 51,180 in THERMO FISHER SCIEN on September 12, 2024 and sell it today you would lose (1,120) from holding THERMO FISHER SCIEN or give up 2.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Eagle Materials vs. THERMO FISHER SCIEN
Performance |
| Timeline |
| Eagle Materials |
| THERMO FISHER SCIEN |
Eagle Materials and THERMO FISHER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Materials and THERMO FISHER
The main advantage of trading using opposite Eagle Materials and THERMO FISHER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Materials position performs unexpectedly, THERMO FISHER 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 THERMO FISHER will offset losses from the drop in THERMO FISHER's long position.| Eagle Materials vs. Vulcan Materials | Eagle Materials vs. Heidelberg Materials AG | Eagle Materials vs. Superior Plus Corp | Eagle Materials vs. NMI Holdings |
| THERMO FISHER vs. OAKTRSPECLENDNEW | THERMO FISHER vs. CHIBA BANK | THERMO FISHER vs. Webster Financial | THERMO FISHER vs. Tradegate AG Wertpapierhandelsbank |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |