Correlation Between Eagon Industrial and Shinsung Delta
Can any of the company-specific risk be diversified away by investing in both Eagon Industrial and Shinsung Delta 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 Shinsung Delta 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 Shinsung Delta Tech, you can compare the effects of market volatilities on Eagon Industrial and Shinsung Delta 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 Shinsung Delta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagon Industrial and Shinsung Delta.
Diversification Opportunities for Eagon Industrial and Shinsung Delta
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eagon and Shinsung is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Eagon Industrial Co and Shinsung Delta Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsung Delta Tech 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 Shinsung Delta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsung Delta Tech has no effect on the direction of Eagon Industrial i.e., Eagon Industrial and Shinsung Delta go up and down completely randomly.
Pair Corralation between Eagon Industrial and Shinsung Delta
Assuming the 90 days trading horizon Eagon Industrial Co is expected to generate 0.44 times more return on investment than Shinsung Delta. However, Eagon Industrial Co is 2.27 times less risky than Shinsung Delta. It trades about 0.09 of its potential returns per unit of risk. Shinsung Delta Tech is currently generating about -0.34 per unit of risk. If you would invest 544,000 in Eagon Industrial Co on November 29, 2024 and sell it today you would earn a total of 13,000 from holding Eagon Industrial Co or generate 2.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagon Industrial Co vs. Shinsung Delta Tech
Performance |
| Timeline |
| Eagon Industrial |
| Shinsung Delta Tech |
Eagon Industrial and Shinsung Delta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagon Industrial and Shinsung Delta
The main advantage of trading using opposite Eagon Industrial and Shinsung Delta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagon Industrial position performs unexpectedly, Shinsung Delta 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 Shinsung Delta will offset losses from the drop in Shinsung Delta's long position.| Eagon Industrial vs. Aprogen Healthcare Games | Eagon Industrial vs. Digital Power Communications | Eagon Industrial vs. LG Display Co | Eagon Industrial vs. Sangsin Energy Display |
| Shinsung Delta vs. MEDIANA CoLtd | Shinsung Delta vs. Daejung Chemicals Metals | Shinsung Delta vs. LEENO Industrial | Shinsung Delta vs. PJ Metal 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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