Correlation Between Eastern and Scotts
Specify exactly 2 symbols:
By analyzing existing cross correlation between Eastern Co and Scotts Miracle Gro 525, you can compare the effects of market volatilities on Eastern and Scotts 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 Scotts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern and Scotts.
Diversification Opportunities for Eastern and Scotts
Very weak diversification
The 3 months correlation between Eastern and Scotts is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Co and Scotts Miracle Gro 525 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scotts Miracle Gro 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 Scotts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scotts Miracle Gro has no effect on the direction of Eastern i.e., Eastern and Scotts go up and down completely randomly.
Pair Corralation between Eastern and Scotts
Considering the 90-day investment horizon Eastern Co is expected to generate 3.36 times more return on investment than Scotts. However, Eastern is 3.36 times more volatile than Scotts Miracle Gro 525. It trades about 0.04 of its potential returns per unit of risk. Scotts Miracle Gro 525 is currently generating about 0.01 per unit of risk. If you would invest 1,955 in Eastern Co on September 12, 2024 and sell it today you would earn a total of 1,082 from holding Eastern Co or generate 55.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 93.54% |
| Values | Daily Returns |
Eastern Co vs. Scotts Miracle Gro 525
Performance |
| Timeline |
| Eastern |
| Scotts Miracle Gro |
Eastern and Scotts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern and Scotts
The main advantage of trading using opposite Eastern and Scotts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern position performs unexpectedly, Scotts 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 Scotts will offset losses from the drop in Scotts' long position.| Eastern vs. Timken Company | Eastern vs. Lincoln Electric Holdings | Eastern vs. Hillman Solutions Corp | Eastern vs. AB SKF |
| Scotts vs. AEP TEX INC | Scotts vs. US BANK NATIONAL | Scotts vs. Applied Blockchain | Scotts vs. BigBearai Holdings |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |