Correlation Between Eastern Technical and Moong Pattana
Can any of the company-specific risk be diversified away by investing in both Eastern Technical and Moong Pattana at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Eastern Technical and Moong Pattana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastern Technical Engineering and Moong Pattana International, you can compare the effects of market volatilities on Eastern Technical and Moong Pattana 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 Moong Pattana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Technical and Moong Pattana.
Diversification Opportunities for Eastern Technical and Moong Pattana
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eastern and Moong is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Technical Engineering and Moong Pattana International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moong Pattana Intern 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 Moong Pattana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moong Pattana Intern has no effect on the direction of Eastern Technical i.e., Eastern Technical and Moong Pattana go up and down completely randomly.
Pair Corralation between Eastern Technical and Moong Pattana
Assuming the 90 days trading horizon Eastern Technical is expected to generate 1.02 times less return on investment than Moong Pattana. In addition to that, Eastern Technical is 1.0 times more volatile than Moong Pattana International. It trades about 0.06 of its total potential returns per unit of risk. Moong Pattana International is currently generating about 0.07 per unit of volatility. If you would invest 207.00 in Moong Pattana International on September 1, 2024 and sell it today you would earn a total of 7.00 from holding Moong Pattana International or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.45% |
| Values | Daily Returns |
Eastern Technical Engineering vs. Moong Pattana International
Performance |
| Timeline |
| Eastern Technical |
| Moong Pattana Intern |
Eastern Technical and Moong Pattana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Technical and Moong Pattana
The main advantage of trading using opposite Eastern Technical and Moong Pattana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Technical position performs unexpectedly, Moong Pattana 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 Moong Pattana will offset losses from the drop in Moong Pattana'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 |
| Moong Pattana vs. Metro Systems | Moong Pattana vs. Mega Lifesciences Public | Moong Pattana vs. Hana Microelectronics Public | Moong Pattana vs. Karmarts 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |