Correlation Between EAST Old and Aristocrat Group

Can any of the company-specific risk be diversified away by investing in both EAST Old and Aristocrat Group 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 EAST Old and Aristocrat Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between EAST Old and Aristocrat Group Corp, you can compare the effects of market volatilities on EAST Old and Aristocrat Group 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 EAST Old with a short position of Aristocrat Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of EAST Old and Aristocrat Group.

Diversification Opportunities for EAST Old and Aristocrat Group

0.0

Correlation Coefficient

EAST Old  Aristocrat Group

Pay attention - limited upside

The 3 months correlation between EAST and Aristocrat is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EAST Old and Aristocrat Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aristocrat Group Corp and EAST Old 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 EAST Old are associated (or correlated) with Aristocrat Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aristocrat Group Corp has no effect on the direction of EAST Old i.e., EAST Old and Aristocrat Group go up and down completely randomly.

Pair Corralation between EAST Old and Aristocrat Group

If you would invest  0.70  in Aristocrat Group Corp on December 30, 2024 and sell it today you would earn a total of  5.78  from holding Aristocrat Group Corp or generate 825.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

EAST Old  vs.  Aristocrat Group Corp

EAST Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days EAST Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, EAST Old is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Aristocrat Group Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Aristocrat Group Corp are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, Aristocrat Group exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EAST Old and Aristocrat Group

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

The idea behind EAST Old and Aristocrat Group Corp 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.