Correlation Between Eastern and SANLTD
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By analyzing existing cross correlation between Eastern Co and SANLTD 28 08 MAR 27, you can compare the effects of market volatilities on Eastern and SANLTD 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 SANLTD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern and SANLTD.
Diversification Opportunities for Eastern and SANLTD
Significant diversification
The 3 months correlation between Eastern and SANLTD is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Co and SANLTD 28 08 MAR 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANLTD 28 08 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 SANLTD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANLTD 28 08 has no effect on the direction of Eastern i.e., Eastern and SANLTD go up and down completely randomly.
Pair Corralation between Eastern and SANLTD
Considering the 90-day investment horizon Eastern Co is expected to generate 2.74 times more return on investment than SANLTD. However, Eastern is 2.74 times more volatile than SANLTD 28 08 MAR 27. It trades about 0.0 of its potential returns per unit of risk. SANLTD 28 08 MAR 27 is currently generating about -0.09 per unit of risk. If you would invest 3,117 in Eastern Co on September 3, 2024 and sell it today you would lose (245.00) from holding Eastern Co or give up 7.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 45.89% |
| Values | Daily Returns |
Eastern Co vs. SANLTD 28 08 MAR 27
Performance |
| Timeline |
| Eastern |
| SANLTD 28 08 |
Eastern and SANLTD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern and SANLTD
The main advantage of trading using opposite Eastern and SANLTD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern position performs unexpectedly, SANLTD 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 SANLTD will offset losses from the drop in SANLTD's long position.The idea behind Eastern Co and SANLTD 28 08 MAR 27 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| SANLTD vs. PVH Corp | SANLTD vs. American Eagle Outfitters | SANLTD vs. Steven Madden | SANLTD vs. Silo Pharma |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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