Correlation Between Eastern and 92826CAM4
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By analyzing existing cross correlation between Eastern Co and VISA INC, you can compare the effects of market volatilities on Eastern and 92826CAM4 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 92826CAM4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern and 92826CAM4.
Diversification Opportunities for Eastern and 92826CAM4
Weak diversification
The 3 months correlation between Eastern and 92826CAM4 is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Co and VISA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 92826CAM4 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 92826CAM4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 92826CAM4 has no effect on the direction of Eastern i.e., Eastern and 92826CAM4 go up and down completely randomly.
Pair Corralation between Eastern and 92826CAM4
Considering the 90-day investment horizon Eastern Co is expected to generate 6.35 times more return on investment than 92826CAM4. However, Eastern is 6.35 times more volatile than VISA INC. It trades about 0.04 of its potential returns per unit of risk. VISA INC is currently generating about 0.0 per unit of risk. If you would invest 2,056 in Eastern Co on August 31, 2024 and sell it today you would earn a total of 816.00 from holding Eastern Co or generate 39.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.37% |
| Values | Daily Returns |
Eastern Co vs. VISA INC
Performance |
| Timeline |
| Eastern |
| 92826CAM4 |
Eastern and 92826CAM4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern and 92826CAM4
The main advantage of trading using opposite Eastern and 92826CAM4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern position performs unexpectedly, 92826CAM4 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 92826CAM4 will offset losses from the drop in 92826CAM4's long position.| Eastern vs. Timken Company | Eastern vs. Lincoln Electric Holdings | Eastern vs. Hillman Solutions Corp | Eastern vs. Kennametal |
| 92826CAM4 vs. AEP TEX INC | 92826CAM4 vs. US BANK NATIONAL | 92826CAM4 vs. American Express | 92826CAM4 vs. Chevron Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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