Correlation Between Eastern Media and Topco Scientific

Can any of the company-specific risk be diversified away by investing in both Eastern Media and Topco Scientific 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 Media and Topco Scientific into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eastern Media International and Topco Scientific Co, you can compare the effects of market volatilities on Eastern Media and Topco Scientific 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 Media with a short position of Topco Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Media and Topco Scientific.

Diversification Opportunities for Eastern Media and Topco Scientific

-0.27

Correlation Coefficient

Eastern Media  Topco Scientific

Very good diversification

The 3 months correlation between Eastern and Topco is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Media International and Topco Scientific Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Topco Scientific and Eastern Media 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 Media International are associated (or correlated) with Topco Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Topco Scientific has no effect on the direction of Eastern Media i.e., Eastern Media and Topco Scientific go up and down completely randomly.

Pair Corralation between Eastern Media and Topco Scientific

Assuming the 90 days trading horizon Eastern Media International is expected to generate 1.29 times more return on investment than Topco Scientific. However, Eastern Media is 1.29 times more volatile than Topco Scientific Co. It trades about 0.1 of its potential returns per unit of risk. Topco Scientific Co is currently generating about -0.08 per unit of risk. If you would invest  1,675  in Eastern Media International on December 30, 2024 and sell it today you would earn a total of  160.00  from holding Eastern Media International or generate 9.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Eastern Media International  vs.  Topco Scientific Co

Eastern Media Intern

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Eastern Media International are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Eastern Media may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Topco Scientific

Risk-Adjusted Performance

Very Weak

Over the last 90 days Topco Scientific Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Eastern Media and Topco Scientific

The main advantage of trading using opposite Eastern Media and Topco Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Media position performs unexpectedly, Topco Scientific 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 Topco Scientific will offset losses from the drop in Topco Scientific's long position.

The idea behind Eastern Media International and Topco Scientific Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.