Correlation Between Eddy Smart and East Side
Can any of the company-specific risk be diversified away by investing in both Eddy Smart and East Side 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 Eddy Smart and East Side into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eddy Smart Home and East Side Games, you can compare the effects of market volatilities on Eddy Smart and East Side 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 Eddy Smart with a short position of East Side. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eddy Smart and East Side.
Diversification Opportunities for Eddy Smart and East Side
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eddy and East is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Eddy Smart Home and East Side Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East Side Games and Eddy Smart 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 Eddy Smart Home are associated (or correlated) with East Side. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East Side Games has no effect on the direction of Eddy Smart i.e., Eddy Smart and East Side go up and down completely randomly.
Pair Corralation between Eddy Smart and East Side
Assuming the 90 days horizon Eddy Smart Home is expected to generate 1.62 times more return on investment than East Side. However, Eddy Smart is 1.62 times more volatile than East Side Games. It trades about 0.03 of its potential returns per unit of risk. East Side Games is currently generating about -0.05 per unit of risk. If you would invest 250.00 in Eddy Smart Home on December 2, 2024 and sell it today you would lose (9.00) from holding Eddy Smart Home or give up 3.6% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Eddy Smart Home vs. East Side Games
Performance |
Timeline |
Eddy Smart Home |
East Side Games |
Eddy Smart and East Side Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eddy Smart and East Side
The main advantage of trading using opposite Eddy Smart and East Side positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eddy Smart position performs unexpectedly, East Side 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 Side will offset losses from the drop in East Side's long position.Eddy Smart vs. Simply Better Brands | Eddy Smart vs. Forward Water Technologies | Eddy Smart vs. Pulse Oil Corp | Eddy Smart vs. C3 Metals |
East Side vs. Sangoma Technologies Corp | East Side vs. Vitalhub Corp | East Side vs. Propel Holdings | East Side vs. D2L Inc |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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