Correlation Between Taeyang Metal and EyeGene

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Can any of the company-specific risk be diversified away by investing in both Taeyang Metal and EyeGene 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 Taeyang Metal and EyeGene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taeyang Metal Industrial and EyeGene, you can compare the effects of market volatilities on Taeyang Metal and EyeGene 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 Taeyang Metal with a short position of EyeGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taeyang Metal and EyeGene.

Diversification Opportunities for Taeyang Metal and EyeGene

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Taeyang Metal and EyeGene

If you would invest  0.00  in EyeGene on September 6, 2024 and sell it today you would earn a total of  0.00  from holding EyeGene or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy4.35%
ValuesDaily Returns

Taeyang Metal Industrial  vs.  EyeGene

 Performance 
       Timeline  
Taeyang Metal Industrial 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Taeyang Metal Industrial are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Taeyang Metal sustained solid returns over the last few months and may actually be approaching a breakup point.
EyeGene 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days EyeGene has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, EyeGene is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Taeyang Metal and EyeGene Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Taeyang Metal and EyeGene

The main advantage of trading using opposite Taeyang Metal and EyeGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taeyang Metal position performs unexpectedly, EyeGene 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 EyeGene will offset losses from the drop in EyeGene's long position.
The idea behind Taeyang Metal Industrial and EyeGene 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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