Correlation Between SPECTRA and Eastern
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By analyzing existing cross correlation between SPECTRA ENERGY PARTNERS and Eastern Co, you can compare the effects of market volatilities on SPECTRA and Eastern 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 SPECTRA with a short position of Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPECTRA and Eastern.
Diversification Opportunities for SPECTRA and Eastern
Average diversification
The 3 months correlation between SPECTRA and Eastern is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding SPECTRA ENERGY PARTNERS and Eastern Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern and SPECTRA 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 SPECTRA ENERGY PARTNERS are associated (or correlated) with Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern has no effect on the direction of SPECTRA i.e., SPECTRA and Eastern go up and down completely randomly.
Pair Corralation between SPECTRA and Eastern
Assuming the 90 days trading horizon SPECTRA is expected to generate 40.92 times less return on investment than Eastern. But when comparing it to its historical volatility, SPECTRA ENERGY PARTNERS is 18.65 times less risky than Eastern. It trades about 0.03 of its potential returns per unit of risk. Eastern Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,724 in Eastern Co on September 1, 2024 and sell it today you would earn a total of 1,148 from holding Eastern Co or generate 66.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.65% |
| Values | Daily Returns |
SPECTRA ENERGY PARTNERS vs. Eastern Co
Performance |
| Timeline |
| SPECTRA ENERGY PARTNERS |
| Eastern |
SPECTRA and Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPECTRA and Eastern
The main advantage of trading using opposite SPECTRA and Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPECTRA position performs unexpectedly, Eastern 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 Eastern will offset losses from the drop in Eastern's long position.| SPECTRA vs. Emerson Electric | SPECTRA vs. Mesa Air Group | SPECTRA vs. Allegiant Travel | SPECTRA vs. Air Transport Services |
| Eastern vs. Timken Company | Eastern vs. Hillman Solutions Corp | Eastern vs. AB SKF | Eastern vs. Kennametal |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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