Correlation Between Eastern and CREDIT
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By analyzing existing cross correlation between Eastern Co and CREDIT SUISSE AG, you can compare the effects of market volatilities on Eastern and CREDIT 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 CREDIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern and CREDIT.
Diversification Opportunities for Eastern and CREDIT
Average diversification
The 3 months correlation between Eastern and CREDIT is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Co and CREDIT SUISSE AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CREDIT SUISSE AG 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 CREDIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CREDIT SUISSE AG has no effect on the direction of Eastern i.e., Eastern and CREDIT go up and down completely randomly.
Pair Corralation between Eastern and CREDIT
Considering the 90-day investment horizon Eastern Co is expected to under-perform the CREDIT. In addition to that, Eastern is 22.21 times more volatile than CREDIT SUISSE AG. It trades about -0.11 of its total potential returns per unit of risk. CREDIT SUISSE AG is currently generating about -0.13 per unit of volatility. If you would invest 9,507 in CREDIT SUISSE AG on August 30, 2024 and sell it today you would lose (54.00) from holding CREDIT SUISSE AG or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 88.64% |
| Values | Daily Returns |
Eastern Co vs. CREDIT SUISSE AG
Performance |
| Timeline |
| Eastern |
| CREDIT SUISSE AG |
Eastern and CREDIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern and CREDIT
The main advantage of trading using opposite Eastern and CREDIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern position performs unexpectedly, CREDIT 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 CREDIT will offset losses from the drop in CREDIT's long position.| Eastern vs. Timken Company | Eastern vs. Lincoln Electric Holdings | Eastern vs. Hillman Solutions Corp | Eastern vs. AB SKF |
| CREDIT vs. SunLink Health Systems | CREDIT vs. Eastern Co | CREDIT vs. Teleflex Incorporated | CREDIT vs. Postal Realty Trust |
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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