Correlation Between EastGroup Properties and SAMMON

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

By analyzing existing cross correlation between EastGroup Properties and SAMMON 475 08 APR 32, you can compare the effects of market volatilities on EastGroup Properties and SAMMON 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 SAMMON. Check out your portfolio center. Please also check ongoing floating volatility patterns of EastGroup Properties and SAMMON.

Diversification Opportunities for EastGroup Properties and SAMMON

-0.6

Correlation Coefficient

EastGroup Properties  SAMMON

Excellent diversification

The 3 months correlation between EastGroup and SAMMON is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding EastGroup Properties and SAMMON 475 08 APR 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAMMON 475 08 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 SAMMON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAMMON 475 08 has no effect on the direction of EastGroup Properties i.e., EastGroup Properties and SAMMON go up and down completely randomly.

Pair Corralation between EastGroup Properties and SAMMON

Considering the 90-day investment horizon EastGroup Properties is expected to generate 0.15 times more return on investment than SAMMON. However, EastGroup Properties is 6.81 times less risky than SAMMON. It trades about 0.05 of its potential returns per unit of risk. SAMMON 475 08 APR 32 is currently generating about -0.08 per unit of risk. If you would invest  15,968  in EastGroup Properties on October 22, 2024 and sell it today you would earn a total of  173.00  from holding EastGroup Properties or generate 1.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	31.58%
Values	Daily Returns

EastGroup Properties  vs.  SAMMON 475 08 APR 32

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 latest unfluctuating performance, the Stock's technical and fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

SAMMON 475 08

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SAMMON 475 08 APR 32 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for SAMMON 475 08 APR 32 investors.

Pair Trading with EastGroup Properties and SAMMON

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

The idea behind EastGroup Properties and SAMMON 475 08 APR 32 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.