Correlation Between Eastern Technical and Amata Public
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By analyzing existing cross correlation between Eastern Technical Engineering and Amata Public, you can compare the effects of market volatilities on Eastern Technical and Amata Public 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 Technical with a short position of Amata Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Technical and Amata Public.
Diversification Opportunities for Eastern Technical and Amata Public
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Eastern and Amata is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Technical Engineering and Amata Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amata Public and Eastern Technical 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 Technical Engineering are associated (or correlated) with Amata Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amata Public has no effect on the direction of Eastern Technical i.e., Eastern Technical and Amata Public go up and down completely randomly.
Pair Corralation between Eastern Technical and Amata Public
Assuming the 90 days trading horizon Eastern Technical Engineering is expected to under-perform the Amata Public. But the stock apears to be less risky and, when comparing its historical volatility, Eastern Technical Engineering is 124.09 times less risky than Amata Public. The stock trades about -0.38 of its potential returns per unit of risk. The Amata Public is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,270 in Amata Public on September 5, 2024 and sell it today you would earn a total of 780.00 from holding Amata Public or generate 34.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 69.57% |
| Values | Daily Returns |
Eastern Technical Engineering vs. Amata Public
Performance |
| Timeline |
| Eastern Technical |
| Amata Public |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Eastern Technical and Amata Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Technical and Amata Public
The main advantage of trading using opposite Eastern Technical and Amata Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Technical position performs unexpectedly, Amata Public 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 Amata Public will offset losses from the drop in Amata Public's long position.| Eastern Technical vs. G Capital Public | Eastern Technical vs. Harn Engineering Solutions | Eastern Technical vs. Fortune Parts Industry | Eastern Technical vs. Hydrotek Public |
| Amata Public vs. Techno Medical Public | Amata Public vs. Eastern Technical Engineering | Amata Public vs. DOD Biotech Public | Amata Public vs. Nonthavej Hospital Public |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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