Correlation Between Eagon Industrial and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Eagon Industrial and Samsung Electronics 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 Eagon Industrial and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagon Industrial Co and Samsung Electronics Co, you can compare the effects of market volatilities on Eagon Industrial and Samsung Electronics 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 Eagon Industrial with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagon Industrial and Samsung Electronics.
Diversification Opportunities for Eagon Industrial and Samsung Electronics
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eagon and Samsung is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Eagon Industrial Co and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Eagon Industrial 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 Eagon Industrial Co are associated (or correlated) with Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of Eagon Industrial i.e., Eagon Industrial and Samsung Electronics go up and down completely randomly.
Pair Corralation between Eagon Industrial and Samsung Electronics
Assuming the 90 days trading horizon Eagon Industrial Co is expected to generate 5.01 times more return on investment than Samsung Electronics. However, Eagon Industrial is 5.01 times more volatile than Samsung Electronics Co. It trades about 0.06 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.17 per unit of risk. If you would invest 525,000 in Eagon Industrial Co on November 7, 2024 and sell it today you would earn a total of 19,000 from holding Eagon Industrial Co or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.47% |
| Values | Daily Returns |
Eagon Industrial Co vs. Samsung Electronics Co
Performance |
| Timeline |
| Eagon Industrial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Samsung Electronics |
Eagon Industrial and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagon Industrial and Samsung Electronics
The main advantage of trading using opposite Eagon Industrial and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagon Industrial position performs unexpectedly, Samsung Electronics 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 Samsung Electronics will offset losses from the drop in Samsung Electronics' long position.| Eagon Industrial vs. Daewoo SBI SPAC | Eagon Industrial vs. Jahwa Electron | Eagon Industrial vs. Wonbang Tech Co |
| Samsung Electronics vs. SK Chemicals Co | Samsung Electronics vs. LAKE MATERIALS LTD | Samsung Electronics vs. TK Chemical | Samsung Electronics vs. SAMG Entertainment 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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