Correlation Between EastGroup Properties and OneStream,

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

By analyzing existing cross correlation between EastGroup Properties and OneStream, Class A, you can compare the effects of market volatilities on EastGroup Properties and OneStream, 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 OneStream,. Check out your portfolio center. Please also check ongoing floating volatility patterns of EastGroup Properties and OneStream,.

Diversification Opportunities for EastGroup Properties and OneStream,

0.57

Correlation Coefficient

EastGroup Properties  OneStream,

Very weak diversification

The 3 months correlation between EastGroup and OneStream, is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding EastGroup Properties and OneStream, Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneStream, Class A 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 OneStream,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneStream, Class A has no effect on the direction of EastGroup Properties i.e., EastGroup Properties and OneStream, go up and down completely randomly.

Pair Corralation between EastGroup Properties and OneStream,

Considering the 90-day investment horizon EastGroup Properties is expected to under-perform the OneStream,. But the stock apears to be less risky and, when comparing its historical volatility, EastGroup Properties is 2.14 times less risky than OneStream,. The stock trades about -0.04 of its potential returns per unit of risk. The OneStream, Class A is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  3,170  in OneStream, Class A on October 25, 2024 and sell it today you would lose (192.00) from holding OneStream, Class A or give up 6.06% of portfolio value over 90 days.

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

EastGroup Properties  vs.  OneStream, Class A

EastGroup Properties

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EastGroup Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, EastGroup Properties is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

OneStream, Class A

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OneStream, Class A has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, OneStream, 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 OneStream,

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

The idea behind EastGroup Properties and OneStream, Class A 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.