Correlation Between Eastern and 172967NE7
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By analyzing existing cross correlation between Eastern Co and C 252 03 NOV 32, you can compare the effects of market volatilities on Eastern and 172967NE7 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 172967NE7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern and 172967NE7.
Diversification Opportunities for Eastern and 172967NE7
Very weak diversification
The 3 months correlation between Eastern and 172967NE7 is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Co and C 252 03 NOV 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 172967NE7 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 172967NE7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 172967NE7 has no effect on the direction of Eastern i.e., Eastern and 172967NE7 go up and down completely randomly.
Pair Corralation between Eastern and 172967NE7
Considering the 90-day investment horizon Eastern Co is expected to under-perform the 172967NE7. In addition to that, Eastern is 3.02 times more volatile than C 252 03 NOV 32. It trades about -0.12 of its total potential returns per unit of risk. C 252 03 NOV 32 is currently generating about -0.15 per unit of volatility. If you would invest 8,442 in C 252 03 NOV 32 on September 1, 2024 and sell it today you would lose (237.00) from holding C 252 03 NOV 32 or give up 2.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Eastern Co vs. C 252 03 NOV 32
Performance |
| Timeline |
| Eastern |
| 172967NE7 |
Eastern and 172967NE7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern and 172967NE7
The main advantage of trading using opposite Eastern and 172967NE7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern position performs unexpectedly, 172967NE7 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 172967NE7 will offset losses from the drop in 172967NE7's long position.| Eastern vs. Timken Company | Eastern vs. Hillman Solutions Corp | Eastern vs. AB SKF | Eastern vs. Kennametal |
| 172967NE7 vs. US Global Investors | 172967NE7 vs. Artisan Partners Asset | 172967NE7 vs. Fidus Investment Corp | 172967NE7 vs. Eastern Co |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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