Correlation Between Eastern Technical and Major Cineplex
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By analyzing existing cross correlation between Eastern Technical Engineering and Major Cineplex Group, you can compare the effects of market volatilities on Eastern Technical and Major Cineplex 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 Major Cineplex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Technical and Major Cineplex.
Diversification Opportunities for Eastern Technical and Major Cineplex
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eastern and Major is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Technical Engineering and Major Cineplex Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Major Cineplex Group 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 Major Cineplex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Major Cineplex Group has no effect on the direction of Eastern Technical i.e., Eastern Technical and Major Cineplex go up and down completely randomly.
Pair Corralation between Eastern Technical and Major Cineplex
Assuming the 90 days trading horizon Eastern Technical Engineering is expected to under-perform the Major Cineplex. In addition to that, Eastern Technical is 3.63 times more volatile than Major Cineplex Group. It trades about -0.34 of its total potential returns per unit of risk. Major Cineplex Group is currently generating about 0.0 per unit of volatility. If you would invest 1,450 in Major Cineplex Group on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Major Cineplex Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Technical Engineering vs. Major Cineplex Group
Performance |
| Timeline |
| Eastern Technical |
| Major Cineplex Group |
Eastern Technical and Major Cineplex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Technical and Major Cineplex
The main advantage of trading using opposite Eastern Technical and Major Cineplex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Technical position performs unexpectedly, Major Cineplex 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 Major Cineplex will offset losses from the drop in Major Cineplex'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 |
| Major Cineplex vs. Food Moments PCL | Major Cineplex vs. Delta Electronics Public | Major Cineplex vs. INET Leasehold REIT | Major Cineplex vs. Asia Sermkij Leasing |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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