Correlation Between EastGroup Properties and 65339KBY5

Can any of the company-specific risk be diversified away by investing in both EastGroup Properties and 65339KBY5 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 65339KBY5 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between EastGroup Properties and NEE 1875 15 JAN 27, you can compare the effects of market volatilities on EastGroup Properties and 65339KBY5 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 65339KBY5. Check out your portfolio center. Please also check ongoing floating volatility patterns of EastGroup Properties and 65339KBY5.

Diversification Opportunities for EastGroup Properties and 65339KBY5

0.24

Correlation Coefficient

EastGroup Properties  65339KBY5

Modest diversification

The 3 months correlation between EastGroup and 65339KBY5 is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding EastGroup Properties and NEE 1875 15 JAN 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEE 1875 15 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 65339KBY5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEE 1875 15 has no effect on the direction of EastGroup Properties i.e., EastGroup Properties and 65339KBY5 go up and down completely randomly.

Pair Corralation between EastGroup Properties and 65339KBY5

Considering the 90-day investment horizon EastGroup Properties is expected to generate 1.4 times more return on investment than 65339KBY5. However, EastGroup Properties is 1.4 times more volatile than NEE 1875 15 JAN 27. It trades about 0.12 of its potential returns per unit of risk. NEE 1875 15 JAN 27 is currently generating about -0.05 per unit of risk. If you would invest  16,136  in EastGroup Properties on December 25, 2024 and sell it today you would earn a total of  1,500  from holding EastGroup Properties or generate 9.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.72%
Values	Daily Returns

EastGroup Properties  vs.  NEE 1875 15 JAN 27

EastGroup Properties

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in EastGroup Properties are ranked lower than 9 (%) 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.

NEE 1875 15

Risk-Adjusted Performance

Very Weak

Over the last 90 days NEE 1875 15 JAN 27 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 65339KBY5 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with EastGroup Properties and 65339KBY5

The main advantage of trading using opposite EastGroup Properties and 65339KBY5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EastGroup Properties position performs unexpectedly, 65339KBY5 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 65339KBY5 will offset losses from the drop in 65339KBY5's long position.

The idea behind EastGroup Properties and NEE 1875 15 JAN 27 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.