Correlation Between Sangsangin Investment and Eagon Industrial
Can any of the company-specific risk be diversified away by investing in both Sangsangin Investment and Eagon Industrial 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 Sangsangin Investment and Eagon Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sangsangin Investment Securities and Eagon Industrial Co, you can compare the effects of market volatilities on Sangsangin Investment and Eagon Industrial 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 Sangsangin Investment with a short position of Eagon Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsangin Investment and Eagon Industrial.
Diversification Opportunities for Sangsangin Investment and Eagon Industrial
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sangsangin and Eagon is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Sangsangin Investment Securiti and Eagon Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagon Industrial and Sangsangin Investment 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 Sangsangin Investment Securities are associated (or correlated) with Eagon Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagon Industrial has no effect on the direction of Sangsangin Investment i.e., Sangsangin Investment and Eagon Industrial go up and down completely randomly.
Pair Corralation between Sangsangin Investment and Eagon Industrial
Assuming the 90 days trading horizon Sangsangin Investment Securities is expected to under-perform the Eagon Industrial. In addition to that, Sangsangin Investment is 1.26 times more volatile than Eagon Industrial Co. It trades about -0.08 of its total potential returns per unit of risk. Eagon Industrial Co is currently generating about 0.36 per unit of volatility. If you would invest 491,000 in Eagon Industrial Co on September 14, 2024 and sell it today you would earn a total of 58,000 from holding Eagon Industrial Co or generate 11.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsangin Investment Securiti vs. Eagon Industrial Co
Performance |
| Timeline |
| Sangsangin Investment |
| Eagon Industrial |
Sangsangin Investment and Eagon Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsangin Investment and Eagon Industrial
The main advantage of trading using opposite Sangsangin Investment and Eagon Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsangin Investment position performs unexpectedly, Eagon Industrial 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 Eagon Industrial will offset losses from the drop in Eagon Industrial's long position.| Sangsangin Investment vs. KB Financial Group | Sangsangin Investment vs. Shinhan Financial Group | Sangsangin Investment vs. Hana Financial | Sangsangin Investment vs. Woori Financial Group |
| Eagon Industrial vs. Samsung Electronics Co | Eagon Industrial vs. Samsung Electronics Co | Eagon Industrial vs. SK Hynix | Eagon Industrial vs. POSCO Holdings |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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