Correlation Between East Coast and Prodigy Public
Can any of the company-specific risk be diversified away by investing in both East Coast and Prodigy Public 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 Coast and Prodigy Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between East Coast Furnitech and Prodigy Public, you can compare the effects of market volatilities on East Coast and Prodigy Public 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 Coast with a short position of Prodigy Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of East Coast and Prodigy Public.
Diversification Opportunities for East Coast and Prodigy Public
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between East and Prodigy is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding East Coast Furnitech and Prodigy Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prodigy Public and East Coast 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 Coast Furnitech are associated (or correlated) with Prodigy Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prodigy Public has no effect on the direction of East Coast i.e., East Coast and Prodigy Public go up and down completely randomly.
Pair Corralation between East Coast and Prodigy Public
Assuming the 90 days trading horizon East Coast is expected to generate 1.11 times less return on investment than Prodigy Public. But when comparing it to its historical volatility, East Coast Furnitech is 1.0 times less risky than Prodigy Public. It trades about 0.05 of its potential returns per unit of risk. Prodigy Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 234.00 in Prodigy Public on September 14, 2024 and sell it today you would earn a total of 36.00 from holding Prodigy Public or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.23% |
| Values | Daily Returns |
East Coast Furnitech vs. Prodigy Public
Performance |
| Timeline |
| East Coast Furnitech |
| Prodigy Public |
East Coast and Prodigy Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with East Coast and Prodigy Public
The main advantage of trading using opposite East Coast and Prodigy Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if East Coast position performs unexpectedly, Prodigy Public 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 Prodigy Public will offset losses from the drop in Prodigy Public's long position.| East Coast vs. International Research | East Coast vs. Hydrotek Public | East Coast vs. Getabec Public | East Coast vs. Internet Thailand Public |
| Prodigy Public vs. East Coast Furnitech | Prodigy Public vs. President Automobile Industries | Prodigy Public vs. Siamgas and Petrochemicals | Prodigy Public vs. RB Food Supply |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |