Correlation Between Eagon Industrial and Shinsegae Food
Can any of the company-specific risk be diversified away by investing in both Eagon Industrial and Shinsegae Food 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 Shinsegae Food 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 Shinsegae Food, you can compare the effects of market volatilities on Eagon Industrial and Shinsegae Food 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 Shinsegae Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagon Industrial and Shinsegae Food.
Diversification Opportunities for Eagon Industrial and Shinsegae Food
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eagon and Shinsegae is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Eagon Industrial Co and Shinsegae Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsegae Food 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 Shinsegae Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsegae Food has no effect on the direction of Eagon Industrial i.e., Eagon Industrial and Shinsegae Food go up and down completely randomly.
Pair Corralation between Eagon Industrial and Shinsegae Food
Assuming the 90 days trading horizon Eagon Industrial Co is expected to generate 0.85 times more return on investment than Shinsegae Food. However, Eagon Industrial Co is 1.17 times less risky than Shinsegae Food. It trades about 0.08 of its potential returns per unit of risk. Shinsegae Food is currently generating about -0.13 per unit of risk. If you would invest 502,000 in Eagon Industrial Co on September 12, 2024 and sell it today you would earn a total of 27,000 from holding Eagon Industrial Co or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.31% |
| Values | Daily Returns |
Eagon Industrial Co vs. Shinsegae Food
Performance |
| Timeline |
| Eagon Industrial |
| Shinsegae Food |
Eagon Industrial and Shinsegae Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagon Industrial and Shinsegae Food
The main advantage of trading using opposite Eagon Industrial and Shinsegae Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagon Industrial position performs unexpectedly, Shinsegae Food 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 Shinsegae Food will offset losses from the drop in Shinsegae Food's long position.| Eagon Industrial vs. Sangsangin Investment Securities | Eagon Industrial vs. Lindeman Asia Investment | Eagon Industrial vs. Atinum Investment Co | Eagon Industrial vs. Youngsin Metal Industrial |
| Shinsegae Food vs. Haesung Industrial Co | Shinsegae Food vs. Eagon Industrial Co | Shinsegae Food vs. A Tech Solution Co | Shinsegae Food vs. Intellian Technologies |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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