Correlation Between EastGroup Properties and Latamgrowth SPAC

Can any of the company-specific risk be diversified away by investing in both EastGroup Properties and Latamgrowth SPAC 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 EastGroup Properties and Latamgrowth SPAC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between EastGroup Properties and Latamgrowth SPAC Unit, you can compare the effects of market volatilities on EastGroup Properties and Latamgrowth SPAC 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 EastGroup Properties with a short position of Latamgrowth SPAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of EastGroup Properties and Latamgrowth SPAC.

Diversification Opportunities for EastGroup Properties and Latamgrowth SPAC

0.0

Correlation Coefficient

EastGroup Properties  Latamgrowth SPAC

Pay attention - limited upside

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

Pair Corralation between EastGroup Properties and Latamgrowth SPAC

If you would invest  15,968  in EastGroup Properties on December 22, 2024 and sell it today you would earn a total of  1,343  from holding EastGroup Properties or generate 8.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

EastGroup Properties  vs.  Latamgrowth SPAC Unit

EastGroup Properties

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in EastGroup Properties are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating technical and fundamental indicators, EastGroup Properties may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Latamgrowth SPAC Unit

Risk-Adjusted Performance

Very Weak

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

Pair Trading with EastGroup Properties and Latamgrowth SPAC

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

The idea behind EastGroup Properties and Latamgrowth SPAC Unit 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.

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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..