Correlation Between EastGroup Properties and Emerson Radio
Can any of the company-specific risk be diversified away by investing in both EastGroup Properties and Emerson Radio 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 EastGroup Properties and Emerson Radio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EastGroup Properties and Emerson Radio, you can compare the effects of market volatilities on EastGroup Properties and Emerson Radio 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 EastGroup Properties with a short position of Emerson Radio. Check out your portfolio center. Please also check ongoing floating volatility patterns of EastGroup Properties and Emerson Radio.
Diversification Opportunities for EastGroup Properties and Emerson Radio
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between EastGroup and Emerson is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding EastGroup Properties and Emerson Radio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerson Radio and EastGroup Properties 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 EastGroup Properties are associated (or correlated) with Emerson Radio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerson Radio has no effect on the direction of EastGroup Properties i.e., EastGroup Properties and Emerson Radio go up and down completely randomly.
Pair Corralation between EastGroup Properties and Emerson Radio
Considering the 90-day investment horizon EastGroup Properties is expected to generate 0.41 times more return on investment than Emerson Radio. However, EastGroup Properties is 2.47 times less risky than Emerson Radio. It trades about 0.03 of its potential returns per unit of risk. Emerson Radio is currently generating about 0.01 per unit of risk. If you would invest 15,586 in EastGroup Properties on November 27, 2024 and sell it today you would earn a total of 2,614 from holding EastGroup Properties or generate 16.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
EastGroup Properties vs. Emerson Radio
Performance |
| Timeline |
| EastGroup Properties |
| Emerson Radio |
EastGroup Properties and Emerson Radio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EastGroup Properties and Emerson Radio
The main advantage of trading using opposite EastGroup Properties and Emerson Radio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EastGroup Properties position performs unexpectedly, Emerson Radio 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 Emerson Radio will offset losses from the drop in Emerson Radio's long position.| EastGroup Properties vs. Terreno Realty | EastGroup Properties vs. Plymouth Industrial REIT | EastGroup Properties vs. LXP Industrial Trust | EastGroup Properties vs. First Industrial Realty |
| Emerson Radio vs. VOXX International | Emerson Radio vs. LG Display Co | Emerson Radio vs. Koss Corporation | Emerson Radio vs. Wearable Devices |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |