Correlation Between Eastern and MMA Offshore
Can any of the company-specific risk be diversified away by investing in both Eastern and MMA Offshore 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 and MMA Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastern Co and MMA Offshore Limited, you can compare the effects of market volatilities on Eastern and MMA Offshore 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 with a short position of MMA Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern and MMA Offshore.
Diversification Opportunities for Eastern and MMA Offshore
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eastern and MMA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Co and MMA Offshore Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MMA Offshore Limited and Eastern 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 Co are associated (or correlated) with MMA Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MMA Offshore Limited has no effect on the direction of Eastern i.e., Eastern and MMA Offshore go up and down completely randomly.
Pair Corralation between Eastern and MMA Offshore
If you would invest 150.00 in MMA Offshore Limited on September 5, 2024 and sell it today you would earn a total of 0.00 from holding MMA Offshore Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Eastern Co vs. MMA Offshore Limited
Performance |
| Timeline |
| Eastern |
| MMA Offshore Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eastern and MMA Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern and MMA Offshore
The main advantage of trading using opposite Eastern and MMA Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern position performs unexpectedly, MMA Offshore 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 MMA Offshore will offset losses from the drop in MMA Offshore's long position.| Eastern vs. AB SKF | Eastern vs. Aquagold International | Eastern vs. Thrivent High Yield | Eastern vs. Morningstar Unconstrained Allocation |
| MMA Offshore vs. Bausch Lomb Corp | MMA Offshore vs. Eastern Co | MMA Offshore vs. HNI Corp | MMA Offshore vs. Nike Inc |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |