Correlation Between Storage Computer and Eternal Hospitality

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

By analyzing existing cross correlation between Storage Computer and Eternal Hospitality Group, you can compare the effects of market volatilities on Storage Computer and Eternal Hospitality 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 Storage Computer with a short position of Eternal Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Storage Computer and Eternal Hospitality.

Diversification Opportunities for Storage Computer and Eternal Hospitality

0.0

Correlation Coefficient

Storage Computer  Eternal Hospitality

Pay attention - limited upside

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

Pair Corralation between Storage Computer and Eternal Hospitality

If you would invest  1,785  in Eternal Hospitality Group on September 11, 2025 and sell it today you would earn a total of  0.00  from holding Eternal Hospitality Group or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Storage Computer  vs.  Eternal Hospitality Group

Storage Computer

Risk-Adjusted Performance

Weakest

Over the last 90 days Storage Computer has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Storage Computer is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Eternal Hospitality

Risk-Adjusted Performance

Weakest

Over the last 90 days Eternal Hospitality Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, Eternal Hospitality is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Storage Computer and Eternal Hospitality

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

The idea behind Storage Computer and Eternal Hospitality Group 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.

Check out your portfolio center.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.