Correlation Between Samlip General and Eagle Veterinary
Can any of the company-specific risk be diversified away by investing in both Samlip General 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 Samlip General and Eagle Veterinary into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samlip General Foods and Eagle Veterinary Technology, you can compare the effects of market volatilities on Samlip General 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 Samlip General with a short position of Eagle Veterinary. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samlip General and Eagle Veterinary.
Diversification Opportunities for Samlip General and Eagle Veterinary
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samlip and Eagle is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Samlip General Foods 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 Samlip General 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 Samlip General Foods 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 Samlip General i.e., Samlip General and Eagle Veterinary go up and down completely randomly.
Pair Corralation between Samlip General and Eagle Veterinary
Assuming the 90 days trading horizon Samlip General Foods is expected to under-perform the Eagle Veterinary. But the stock apears to be less risky and, when comparing its historical volatility, Samlip General Foods is 1.97 times less risky than Eagle Veterinary. The stock trades about -0.04 of its potential returns per unit of risk. The Eagle Veterinary Technology is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 550,949 in Eagle Veterinary Technology on September 25, 2024 and sell it today you would lose (64,949) from holding Eagle Veterinary Technology or give up 11.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samlip General Foods vs. Eagle Veterinary Technology
Performance |
| Timeline |
| Samlip General Foods |
| Eagle Veterinary Tec |
Samlip General and Eagle Veterinary Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samlip General and Eagle Veterinary
The main advantage of trading using opposite Samlip General and Eagle Veterinary positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samlip General 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.| Samlip General vs. NewFlex Technology Co | Samlip General vs. Dong A Steel Technology | Samlip General vs. Coloray International Investment | Samlip General vs. Daou Technology |
| Eagle Veterinary vs. Yura Tech Co | Eagle Veterinary vs. KMH Hitech Co | Eagle Veterinary vs. Daou Data Corp | Eagle Veterinary vs. A Tech Solution Co |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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