Correlation Between Samyang Foods and Eagle Veterinary
Can any of the company-specific risk be diversified away by investing in both Samyang Foods and Eagle Veterinary 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 Samyang Foods and Eagle Veterinary into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samyang Foods Co and Eagle Veterinary Technology, you can compare the effects of market volatilities on Samyang Foods and Eagle Veterinary 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 Samyang Foods with a short position of Eagle Veterinary. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyang Foods and Eagle Veterinary.
Diversification Opportunities for Samyang Foods and Eagle Veterinary
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samyang and Eagle is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Samyang Foods Co and Eagle Veterinary Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Veterinary Tec and Samyang Foods 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 Samyang Foods Co are associated (or correlated) with Eagle Veterinary. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Veterinary Tec has no effect on the direction of Samyang Foods i.e., Samyang Foods and Eagle Veterinary go up and down completely randomly.
Pair Corralation between Samyang Foods and Eagle Veterinary
Assuming the 90 days trading horizon Samyang Foods Co is expected to generate 1.24 times more return on investment than Eagle Veterinary. However, Samyang Foods is 1.24 times more volatile than Eagle Veterinary Technology. It trades about -0.19 of its potential returns per unit of risk. Eagle Veterinary Technology is currently generating about -0.24 per unit of risk. If you would invest 73,400,000 in Samyang Foods Co on November 7, 2024 and sell it today you would lose (5,000,000) from holding Samyang Foods Co or give up 6.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.47% |
| Values | Daily Returns |
Samyang Foods Co vs. Eagle Veterinary Technology
Performance |
| Timeline |
| Samyang Foods |
| Eagle Veterinary Tec |
Samyang Foods and Eagle Veterinary Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyang Foods and Eagle Veterinary
The main advantage of trading using opposite Samyang Foods and Eagle Veterinary positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyang Foods position performs unexpectedly, Eagle Veterinary 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 Eagle Veterinary will offset losses from the drop in Eagle Veterinary's long position.| Samyang Foods vs. AptaBio Therapeutics | Samyang Foods vs. Daewoo SBI SPAC | Samyang Foods vs. Dream Security co | Samyang Foods vs. Microfriend |
| Eagle Veterinary vs. Playgram Co | Eagle Veterinary vs. Digital Imaging Technology | Eagle Veterinary vs. Seoul Semiconductor Co | Eagle Veterinary vs. Shinhan Inverse Copper |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |