Correlation Between Eastern and Ideanomics
Can any of the company-specific risk be diversified away by investing in both Eastern and Ideanomics 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 Ideanomics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastern Co and Ideanomics, you can compare the effects of market volatilities on Eastern and Ideanomics 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 Ideanomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern and Ideanomics.
Diversification Opportunities for Eastern and Ideanomics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eastern and Ideanomics is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Co and Ideanomics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ideanomics 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 Ideanomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ideanomics has no effect on the direction of Eastern i.e., Eastern and Ideanomics go up and down completely randomly.
Pair Corralation between Eastern and Ideanomics
If you would invest 1,951 in Eastern Co on September 13, 2024 and sell it today you would earn a total of 946.00 from holding Eastern Co or generate 48.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Eastern Co vs. Ideanomics
Performance |
| Timeline |
| Eastern |
| Ideanomics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eastern and Ideanomics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern and Ideanomics
The main advantage of trading using opposite Eastern and Ideanomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern position performs unexpectedly, Ideanomics 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 Ideanomics will offset losses from the drop in Ideanomics' long position.| Eastern vs. Timken Company | Eastern vs. Lincoln Electric Holdings | Eastern vs. Hillman Solutions Corp | Eastern vs. AB SKF |
| Ideanomics vs. enVVeno Medical Corp | Ideanomics vs. Life Time Group | Ideanomics vs. Neogen | Ideanomics vs. Mattel 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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