Correlation Between Eagle Materials and Aperture Health
Can any of the company-specific risk be diversified away by investing in both Eagle Materials and Aperture Health 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 Eagle Materials and Aperture Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Materials and Aperture Health, you can compare the effects of market volatilities on Eagle Materials and Aperture Health 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 Eagle Materials with a short position of Aperture Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Materials and Aperture Health.
Diversification Opportunities for Eagle Materials and Aperture Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eagle and Aperture is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Materials and Aperture Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aperture Health and Eagle Materials 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 Eagle Materials are associated (or correlated) with Aperture Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aperture Health has no effect on the direction of Eagle Materials i.e., Eagle Materials and Aperture Health go up and down completely randomly.
Pair Corralation between Eagle Materials and Aperture Health
If you would invest 25,023 in Eagle Materials on October 25, 2024 and sell it today you would earn a total of 753.00 from holding Eagle Materials or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Eagle Materials vs. Aperture Health
Performance |
| Timeline |
| Eagle Materials |
| Aperture Health |
Eagle Materials and Aperture Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Materials and Aperture Health
The main advantage of trading using opposite Eagle Materials and Aperture Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Materials position performs unexpectedly, Aperture Health 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 Aperture Health will offset losses from the drop in Aperture Health's long position.| Eagle Materials vs. Vulcan Materials | Eagle Materials vs. CRH PLC ADR | Eagle Materials vs. Summit Materials | Eagle Materials vs. Cemex SAB de |
| Aperture Health vs. Martin Marietta Materials | Aperture Health vs. CRH PLC ADR | Aperture Health vs. Eagle Materials | Aperture Health vs. Summit Materials |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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