Correlation Between Eagon Industrial and Kukdong Oil
Can any of the company-specific risk be diversified away by investing in both Eagon Industrial and Kukdong Oil 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 Kukdong Oil 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 Kukdong Oil Chemicals, you can compare the effects of market volatilities on Eagon Industrial and Kukdong Oil 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 Kukdong Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagon Industrial and Kukdong Oil.
Diversification Opportunities for Eagon Industrial and Kukdong Oil
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eagon and Kukdong is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Eagon Industrial Co and Kukdong Oil Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kukdong Oil Chemicals 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 Kukdong Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kukdong Oil Chemicals has no effect on the direction of Eagon Industrial i.e., Eagon Industrial and Kukdong Oil go up and down completely randomly.
Pair Corralation between Eagon Industrial and Kukdong Oil
Assuming the 90 days trading horizon Eagon Industrial Co is expected to generate 1.14 times more return on investment than Kukdong Oil. However, Eagon Industrial is 1.14 times more volatile than Kukdong Oil Chemicals. It trades about 0.13 of its potential returns per unit of risk. Kukdong Oil Chemicals is currently generating about -0.23 per unit of risk. If you would invest 492,500 in Eagon Industrial Co on September 1, 2024 and sell it today you would earn a total of 11,500 from holding Eagon Industrial Co or generate 2.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagon Industrial Co vs. Kukdong Oil Chemicals
Performance |
| Timeline |
| Eagon Industrial |
| Kukdong Oil Chemicals |
Eagon Industrial and Kukdong Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagon Industrial and Kukdong Oil
The main advantage of trading using opposite Eagon Industrial and Kukdong Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagon Industrial position performs unexpectedly, Kukdong Oil 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 Kukdong Oil will offset losses from the drop in Kukdong Oil's long position.| Eagon Industrial vs. AptaBio Therapeutics | Eagon Industrial vs. Daewoo SBI SPAC | Eagon Industrial vs. Dream Security co | Eagon Industrial vs. Microfriend |
| Kukdong Oil vs. AptaBio Therapeutics | Kukdong Oil vs. Daewoo SBI SPAC | Kukdong Oil vs. Dream Security co | Kukdong Oil vs. Microfriend |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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