Correlation Between Eagon Industrial and Mobile Appliance
Can any of the company-specific risk be diversified away by investing in both Eagon Industrial and Mobile Appliance 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 Mobile Appliance 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 Mobile Appliance, you can compare the effects of market volatilities on Eagon Industrial and Mobile Appliance 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 Mobile Appliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagon Industrial and Mobile Appliance.
Diversification Opportunities for Eagon Industrial and Mobile Appliance
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eagon and Mobile is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Eagon Industrial Co and Mobile Appliance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobile Appliance 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 Mobile Appliance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobile Appliance has no effect on the direction of Eagon Industrial i.e., Eagon Industrial and Mobile Appliance go up and down completely randomly.
Pair Corralation between Eagon Industrial and Mobile Appliance
Assuming the 90 days trading horizon Eagon Industrial Co is expected to generate 0.51 times more return on investment than Mobile Appliance. However, Eagon Industrial Co is 1.98 times less risky than Mobile Appliance. It trades about 0.12 of its potential returns per unit of risk. Mobile Appliance is currently generating about -0.13 per unit of risk. If you would invest 488,000 in Eagon Industrial Co on September 23, 2024 and sell it today you would earn a total of 21,000 from holding Eagon Industrial Co or generate 4.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagon Industrial Co vs. Mobile Appliance
Performance |
| Timeline |
| Eagon Industrial |
| Mobile Appliance |
Eagon Industrial and Mobile Appliance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagon Industrial and Mobile Appliance
The main advantage of trading using opposite Eagon Industrial and Mobile Appliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagon Industrial position performs unexpectedly, Mobile Appliance 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 Mobile Appliance will offset losses from the drop in Mobile Appliance's long position.| Eagon Industrial vs. AptaBio Therapeutics | Eagon Industrial vs. Wonbang Tech Co | Eagon Industrial vs. Busan Industrial Co | Eagon Industrial vs. Busan Ind |
| Mobile Appliance vs. Eagon Industrial Co | Mobile Appliance vs. Pyung Hwa Industrial | Mobile Appliance vs. Myoung Shin Industrial | Mobile Appliance vs. Daelim Industrial 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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