Correlation Between Eastern and KROGER
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By analyzing existing cross correlation between Eastern Co and KROGER 35 percent, you can compare the effects of market volatilities on Eastern and KROGER 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 KROGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern and KROGER.
Diversification Opportunities for Eastern and KROGER
Weak diversification
The 3 months correlation between Eastern and KROGER is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Co and KROGER 35 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KROGER 35 percent 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 KROGER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KROGER 35 percent has no effect on the direction of Eastern i.e., Eastern and KROGER go up and down completely randomly.
Pair Corralation between Eastern and KROGER
Considering the 90-day investment horizon Eastern Co is expected to generate 3.22 times more return on investment than KROGER. However, Eastern is 3.22 times more volatile than KROGER 35 percent. It trades about -0.03 of its potential returns per unit of risk. KROGER 35 percent is currently generating about -0.2 per unit of risk. If you would invest 3,037 in Eastern Co on September 4, 2024 and sell it today you would lose (75.00) from holding Eastern Co or give up 2.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Eastern Co vs. KROGER 35 percent
Performance |
| Timeline |
| Eastern |
| KROGER 35 percent |
Eastern and KROGER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern and KROGER
The main advantage of trading using opposite Eastern and KROGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern position performs unexpectedly, KROGER 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 KROGER will offset losses from the drop in KROGER's long position.| Eastern vs. AB SKF | Eastern vs. Aquagold International | Eastern vs. Thrivent High Yield | Eastern vs. Morningstar Unconstrained Allocation |
| KROGER vs. Weyco Group | KROGER vs. Eastern Co | KROGER vs. RBC Bearings Incorporated | KROGER vs. Tower One Wireless |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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