Correlation Between Eastern and 44965UAA2
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By analyzing existing cross correlation between Eastern Co and AER 653829 21 DEC 65, you can compare the effects of market volatilities on Eastern and 44965UAA2 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 44965UAA2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern and 44965UAA2.
Diversification Opportunities for Eastern and 44965UAA2
Modest diversification
The 3 months correlation between Eastern and 44965UAA2 is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Co and AER 653829 21 DEC 65 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AER 653829 21 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 44965UAA2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AER 653829 21 has no effect on the direction of Eastern i.e., Eastern and 44965UAA2 go up and down completely randomly.
Pair Corralation between Eastern and 44965UAA2
Considering the 90-day investment horizon Eastern Co is expected to generate 1.29 times more return on investment than 44965UAA2. However, Eastern is 1.29 times more volatile than AER 653829 21 DEC 65. It trades about 0.07 of its potential returns per unit of risk. AER 653829 21 DEC 65 is currently generating about -0.03 per unit of risk. If you would invest 1,741 in Eastern Co on September 12, 2024 and sell it today you would earn a total of 1,259 from holding Eastern Co or generate 72.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 29.91% |
| Values | Daily Returns |
Eastern Co vs. AER 653829 21 DEC 65
Performance |
| Timeline |
| Eastern |
| AER 653829 21 |
Eastern and 44965UAA2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern and 44965UAA2
The main advantage of trading using opposite Eastern and 44965UAA2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern position performs unexpectedly, 44965UAA2 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 44965UAA2 will offset losses from the drop in 44965UAA2's long position.| Eastern vs. Timken Company | Eastern vs. Lincoln Electric Holdings | Eastern vs. Hillman Solutions Corp | Eastern vs. AB SKF |
| 44965UAA2 vs. Weyco Group | 44965UAA2 vs. Eastern Co | 44965UAA2 vs. Bank of New | 44965UAA2 vs. RBC Bearings Incorporated |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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