Correlation Between 459506AS0 and EastGroup Properties

Can any of the company-specific risk be diversified away by investing in both 459506AS0 and EastGroup Properties 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 459506AS0 and EastGroup Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between IFF 3468 01 DEC 50 and EastGroup Properties, you can compare the effects of market volatilities on 459506AS0 and EastGroup Properties 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 459506AS0 with a short position of EastGroup Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of 459506AS0 and EastGroup Properties.

Diversification Opportunities for 459506AS0 and EastGroup Properties

0.31

Correlation Coefficient

459506AS0  EastGroup Properties

Weak diversification

The 3 months correlation between 459506AS0 and EastGroup is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding IFF 3468 01 DEC 50 and EastGroup Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EastGroup Properties and 459506AS0 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 IFF 3468 01 DEC 50 are associated (or correlated) with EastGroup Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EastGroup Properties has no effect on the direction of 459506AS0 i.e., 459506AS0 and EastGroup Properties go up and down completely randomly.

Pair Corralation between 459506AS0 and EastGroup Properties

Assuming the 90 days trading horizon IFF 3468 01 DEC 50 is expected to generate 0.77 times more return on investment than EastGroup Properties. However, IFF 3468 01 DEC 50 is 1.29 times less risky than EastGroup Properties. It trades about -0.2 of its potential returns per unit of risk. EastGroup Properties is currently generating about -0.17 per unit of risk. If you would invest  6,841  in IFF 3468 01 DEC 50 on October 9, 2024 and sell it today you would lose (502.00) from holding IFF 3468 01 DEC 50 or give up 7.34% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	94.87%
Values	Daily Returns

IFF 3468 01 DEC 50  vs.  EastGroup Properties

IFF 3468 01

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days IFF 3468 01 DEC 50 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for IFF 3468 01 DEC 50 investors.

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.

Pair Trading with 459506AS0 and EastGroup Properties

The main advantage of trading using opposite 459506AS0 and EastGroup Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 459506AS0 position performs unexpectedly, EastGroup Properties 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 EastGroup Properties will offset losses from the drop in EastGroup Properties' long position.

The idea behind IFF 3468 01 DEC 50 and EastGroup Properties 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.