Correlation Between Eastern and Maquia Capital

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

By analyzing existing cross correlation between Eastern Co and Maquia Capital Acquisition, you can compare the effects of market volatilities on Eastern and Maquia Capital 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 Eastern with a short position of Maquia Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern and Maquia Capital.

Diversification Opportunities for Eastern and Maquia Capital

0.0

Correlation Coefficient

Eastern  Maquia Capital

Pay attention - limited upside

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

Pair Corralation between Eastern and Maquia Capital

If you would invest  2,647  in Eastern Co on December 27, 2024 and sell it today you would earn a total of  26.00  from holding Eastern Co or generate 0.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Eastern Co  vs.  Maquia Capital Acquisition

Eastern

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Eastern Co are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent primary indicators, Eastern is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Maquia Capital Acqui

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Eastern and Maquia Capital

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

The idea behind Eastern Co and Maquia Capital Acquisition 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.