Correlation Between Eastern Commercial and Cal Comp
Can any of the company-specific risk be diversified away by investing in both Eastern Commercial and Cal Comp 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 Eastern Commercial and Cal Comp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastern Commercial Leasing and Cal Comp Electronics Public, you can compare the effects of market volatilities on Eastern Commercial and Cal Comp 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 Eastern Commercial with a short position of Cal Comp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Commercial and Cal Comp.
Diversification Opportunities for Eastern Commercial and Cal Comp
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eastern and Cal is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Commercial Leasing and Cal Comp Electronics Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cal Comp Electronics and Eastern Commercial 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 Eastern Commercial Leasing are associated (or correlated) with Cal Comp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cal Comp Electronics has no effect on the direction of Eastern Commercial i.e., Eastern Commercial and Cal Comp go up and down completely randomly.
Pair Corralation between Eastern Commercial and Cal Comp
Assuming the 90 days trading horizon Eastern Commercial Leasing is expected to under-perform the Cal Comp. But the stock apears to be less risky and, when comparing its historical volatility, Eastern Commercial Leasing is 1.24 times less risky than Cal Comp. The stock trades about -0.31 of its potential returns per unit of risk. The Cal Comp Electronics Public is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest 985.00 in Cal Comp Electronics Public on October 22, 2024 and sell it today you would lose (145.00) from holding Cal Comp Electronics Public or give up 14.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Eastern Commercial Leasing vs. Cal Comp Electronics Public
Performance |
| Timeline |
| Eastern Commercial |
| Cal Comp Electronics |
Eastern Commercial and Cal Comp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Commercial and Cal Comp
The main advantage of trading using opposite Eastern Commercial and Cal Comp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Commercial position performs unexpectedly, Cal Comp 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 Cal Comp will offset losses from the drop in Cal Comp's long position.| Eastern Commercial vs. Chai Watana Tannery | Eastern Commercial vs. EMC Public | Eastern Commercial vs. Asia Plus Group | Eastern Commercial vs. Globlex Holding Management |
| Cal Comp vs. Hana Microelectronics Public | Cal Comp vs. KCE Electronics Public | Cal Comp vs. Dynasty Ceramic Public | Cal Comp vs. Delta Electronics Public |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |