Correlation Between Keepers Holdings and East West
Can any of the company-specific risk be diversified away by investing in both Keepers Holdings and East West 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 Keepers Holdings and East West into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Keepers Holdings and East West Banking, you can compare the effects of market volatilities on Keepers Holdings and East West 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 Keepers Holdings with a short position of East West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keepers Holdings and East West.
Diversification Opportunities for Keepers Holdings and East West
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Keepers and East is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Keepers Holdings and East West Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East West Banking and Keepers Holdings 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 Keepers Holdings are associated (or correlated) with East West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East West Banking has no effect on the direction of Keepers Holdings i.e., Keepers Holdings and East West go up and down completely randomly.
Pair Corralation between Keepers Holdings and East West
Assuming the 90 days trading horizon Keepers Holdings is expected to generate 1.9 times more return on investment than East West. However, Keepers Holdings is 1.9 times more volatile than East West Banking. It trades about 0.08 of its potential returns per unit of risk. East West Banking is currently generating about -0.04 per unit of risk. If you would invest 235.00 in Keepers Holdings on November 4, 2024 and sell it today you would earn a total of 6.00 from holding Keepers Holdings or generate 2.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keepers Holdings vs. East West Banking
Performance |
| Timeline |
| Keepers Holdings |
| East West Banking |
Keepers Holdings and East West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keepers Holdings and East West
The main advantage of trading using opposite Keepers Holdings and East West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keepers Holdings position performs unexpectedly, East West 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 East West will offset losses from the drop in East West's long position.| Keepers Holdings vs. Atlas Consolidated Mining | Keepers Holdings vs. Manila Mining Corp | Keepers Holdings vs. Robinsons Retail Holdings | Keepers Holdings vs. Philex Mining Corp |
| East West vs. Rizal Commercial Banking | East West vs. Apex Mining Co | East West vs. Transpacific Broadband Group | East West vs. Jollibee Foods 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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